First Time Buyer Mortgage 5.5 times income with 10% deposit

From 26^th April 2021, we will have access to an exciting new mortgage aimed at first time buyers which will allow them to borrow up to 5.5 times income on a mortgage.

Where this is really special and exciting is it goes all the way up to 90% loan-to-value i.e. just a 10% deposit.

The change means the lender could now provide a first-time buyer couple with a joint employed income of £50,000 a mortgage of £275,000, rather than the £225,000.

This offer is currently limited to “employed” applicants.

As with all mortgages; the 5.5 times mortgage should be discussed first with a professional mortgage advisory firm such as Niche Advice Limited to make sure it is affordable.

Key points:

• Available to applicants buying in England, Wales and Scotland.
• 90% loan-to-value i.e 10% deposit.
• First time buyer purchases.
• The applicants must live in the property i.e. residential.
• Employed applicants only.
• Missed payments on personal finance are not allowed.
• Foreign nationals living in the UK on Tier 1, Tier 2, Spousal and Ancestry Visas are considered but the minimum deposit from them is 25%.
• New build houses 85% loan-to-value | New build flats 75% loan-to-value.
• Flats are generally limited to a maximum of 4 storeys in the block.

Assessment of your eligibility will not be possible until the 26^th April 2021.

Author: Payam Azadi

Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.

Twitter Facebook Linkedin