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
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: