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A Solution For First Time Buyers To Get On The Property Ladder

Until recently, it has become increasing difficult for first time buyers to get a foothold on the property ladder in the UK. Due to the rapid increase in house prices over recent years, more and more first time buyers are finding it almost impossible to raise the deposit required for a regular residential mortgage.

Some first time buyers have resorted to purchasing a cheaper rental property abroad with a view to reselling the property at a later date and using the profits for a deposit on a UK property.

But with the introduction of the Builders Deposit Or Gifted Deposit Buy To Let Mortgage, there is a more attractive alternative.

A Builders Deposit Or Gifted Deposit Buy To Let Mortgage is a recent product aimed at investors who are looking to build their property portfiolios quickly and at the minimum of capital investment and is available to first time buyers

A 15% builders deposit or gifted deposit buy to let mortgage provides 100% finance for buy to let investment property purchases if the buyer negotiates a 15% discount of the market value of the property. In other words, the 15% discount is the deposit on the loan so that the buyer does not need to invest any further capital.

This product has opened the door to first time buyers who are unable to raise the deposit for a residential mortgage. Instead of using savings and borrowed finance to put together a deposit, the first time buyer need only to negotiate a 15% discount off the market value of a house which they can let to cover the mortgage payments. There is an immediate 15% equity in the house which is will increase over time and can be released as a sale at a later date to use as a deposit on a regular residential mortgage.

These kind of mortgages are very popular with investors since they avoid tying-up any capital in the property and If the rental assessment of the property matches 100% of the monthly mortgage payment then it automatically qualifies for the mortgage lending.

If it does not qualifiy you can still get this kind of mortgage for the investment. All you need to do is check that you have sufficient salary and outgoings to make up the mortgage shortfall and you may proceed.

Whether you are a current landlord or an individual looking to buy your first buy to let property, it really does not matter, as you can now reduce the risk of investing without having to use your own funds as a deposit.

About the Author:

James Grantworth is the Marketing Director for Let Mortgages Limited, a company specializing in Buy To Let Mortgages for the investor looking to build their portfolio quickly & with the absolute minimum capital investment. For full details of our no money down Buy To Let Mortgage deals visit: www.letmortgages.com/builders-deposit

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