How to get a low income mortgage?

November 14, 2022 By: Admin0 comments

Get a low-income mortgage – People of all ages find getting a foot on the property ladder harder. The prices of homes in many parts of the UK are still rising, and most companies only pay their worker’s minimum wage. Because of this, many people worry that they will never own a house. If you are a first-time buyer with a low income and want to get a low-income mortgage, there are a lot of different options you can look into:

Check out the different government Schemes.

A scheme called “help to buy” is made to help people get on the property ladder. In April of this year, the government started a new programme that will last until March 2023. With this programme, the government gives buyers up to 20% of the value of their new home and up to 40% in London. This programme lets buyers pay a 5% deposit instead of a 10% deposit, making it much easier for low-income people to save up for this first payment. Nowadays, getting a mortgage for 95% is hard, so this programme is very helpful.

You can opt for a ‘part rent’, ‘part buy’ solution.

Shared ownership is another programme under the “help to buy” umbrella. This scheme is a good option for many people to think about. With shared ownership, you own part of a property and pay rent on the rest, which makes saving up for a down payment and borrowing less money from a lender much easier.  Most of the time, the shares you can buy in a property are between 25% and 75% of its value, and you can often buy a larger share later. This process is called “staircasing” and how you can buy a larger share in the future. You can also sell back your share later to use that money for a down payment on a new home.

You can think about a mortgage for a family.

Family mortgages, like the Family Springboard Mortgage from Barclays, are something many people don’t know about, but they are a great option for low-income people. With this mortgage, you won’t have to save up for a down payment. Instead, a family member will put 10% of the purchase price into a savings account with the lender. If you pay your mortgage on time for a certain amount, usually 3 to 5 years, your family member will get their money back, plus any interest that has built up. With a family mortgage, you still own the property, just like with any other type of mortgage.

You can ask someone to back up the mortgage.

A guarantor mortgage is something else to consider if you have a low income. This mortgage is similar to a family mortgage, but a family member backs your mortgage payments instead of the bank. When you get a guarantor mortgage, you will still need to save up for and put down a down payment on a house. The good thing about this kind of mortgage is that if you have a guarantor, you can often get a bigger loan than you could on your own. Since the guarantor gives the lender extra peace of mind that they will always get the mortgage payments, they are more likely to offer mortgages with a higher Loan-to-Value.

Are you looking for a Slough mortgage broker?

Care Financial Services has been giving our customers mortgage advice that is both professional and friendly. If you’re looking for a Mortgage Advisor who can help you get a mortgage deal no matter your current situation, contact our team, and we will do everything to help you. We offer mortgage deals from the whole market, unlike other mortgage brokers. We are also committed to providing our customers with the best service possible. Why not use our website to schedule a free consultation with a qualified Mortgage Advisor today? You can come to one of our offices to meet with us, or we can set up a phone meeting, whichever is easier for you. We hope to hear from you whether you’re buying your first home or want to move up to a bigger one.

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