One of the biggest obstacles to owning a home is saving a big enough deposit, with the Council of Mortgage Lenders reporting that the average first-time buyer must save 15 percent of a property’s value, or £24,000 of the £160,000 average first home price it is no wonder that the number of people renting is increasing.
However it is not all doom and gloom for young people wanting to buy their first home.
Housebuilder, Bellway is offering a ‘Helping Hands’ scheme to get you on the housing ladder.
The scheme allows your family or friends to pay your deposit and in return Bellway will reward them with a 12.5 percent per annum equivalent interest payment for two years.
Specifically, a home valued at £160,000 will require a 20 percent deposit of £32,000, out of reach for many young people, however, if you family gifts you or loans you the deposit they will receive a 12.5 percent interest payment in the first year of £4,000 and a further £4,000 payment in the second year.
The Helping Hands scheme is flexible as it allows both sets of parents to contribute, or to contribute towards the deposit if the buyer already has some savings of their own towards a deposit.
The contribution may not need to be as high as 20 percent.
Some lenders may lend up to 90 percent of the purchase price, only requiring a 10 percent deposit, however the more deposit you can put down, the more attractive the lender’s interest rate becomes.
For more information visit www.bellway.co.uk.