First time Buyer

Accord 5k Mortgag

Breaking Down Accord Mortgages £5K Deposit Mortgage for First-Time Buyers

Published on by David

For many young adults, getting on the property ladder can feel like a distant dream. High house prices and the challenge of saving for a deposit often make homeownership seem out of reach. However, Accord Mortgages has introduced a new option that could help first-time buyers take their first step towards owning a home—the £5,000 deposit mortgage.

What Is the £5K Deposit Mortgage?

Accord Mortgages, part of the Yorkshire Building Society, has launched a mortgage specifically aimed at first-time buyers who may struggle to save for a traditional deposit. This mortgage allows buyers to secure a home with as little as £5,000 upfront, reducing the financial burden of getting onto the property ladder.

Key Features of the Mortgage

  • Low Deposit Requirement: Unlike typical mortgages that require a minimum of 5% of the property’s value/purchase price as a deposit, this product allows first-time buyers to put down just £5,000.
  • Affordability Checks: Buyers will still need to meet affordability criteria to ensure they can manage their mortgage repayments.
  • Available Through Brokers: The mortgage is also accessible through intermediaries, meaning buyers will need to work with a mortgage broker if they want to apply via Accord Mortgages.
  • Fixed-Rate Option: The product comes with fixed-rate terms, offering stability in monthly repayments.
  • Maximum loan to value: 99% of purchase price or valuation whichever is the lower.
  • Property types: Available for Houses and Flats (no new built properties)
  • Purchase Price: Minimum purchase price £100,001 and Maximum purchase price £500,000
  • Loan Amount: Minimum loan £95,001 and Maximum loan £495,000

Who Is Eligible?

This mortgage is designed for first-time buyers who have saved at least £5,000 but may struggle to reach a traditional deposit threshold. Buyers must still meet income and affordability requirements, and the loan amount will depend on individual circumstances and the property value.

Is This the Right Option for You?

While the £5K deposit mortgage opens doors for many aspiring homeowners, it’s important to consider whether it’s the best choice for your financial situation. Some key factors to think about include:

  • Interest Rates: Low-deposit mortgages often come with higher interest rates than those with larger deposits.
  • Long-Term Costs: A smaller deposit means borrowing a larger percentage of the property’s value, potentially leading to higher monthly payments.
  • Alternative Options: Shared Equity or Shared Ownership may also be worth exploring.

How to Apply

Since this mortgage is available through brokers if you want to apply via Accord Mortgages, speaking with an experienced mortgage adviser is the best way to determine if it suits your needs. A broker can help assess your eligibility, compare options, and guide you through the application process.

Final Thoughts

Accord Mortgages £5,000 deposit mortgage offers a valuable opportunity for first-time buyers struggling to save for a large deposit. While it won’t be the right fit for everyone, it provides an accessible route to homeownership for those ready to take the leap.

If you’re considering this mortgage, speaking to a professional mortgage broker will help you make an informed decision based on your personal financial situation.

Looking for expert mortgage advice? Get in touch with our team today to explore your options and take your first step toward homeownership.

Tel – 01224 679330 | Email – hello@portfs.co.uk | Online – https://bit.ly/Mortgage-Review

Your home may be repossessed if you do not keep up repayments on your mortgage

Home

set of house keys in a hand

Why Choose a Mortgage Broker for Your Next Home?

Published on by David

🏡 Dreaming of a new home or thinking about remortgaging? Let a mortgage broker guide you every step of the way! Here are some amazing benefits of working with a mortgage broker:

Personalised Service 🤝

  • Tailored Advice: Mortgage brokers are dedicated to understanding your unique financial situation and goals, ensuring you get the best mortgage solution.
  • Expert Guidance: With a wealth of industry knowledge, they can navigate complex terms and conditions, making your journey smoother.

Access to a Wide Range of Options 📊

  • Extensive Network: Brokers have access to a comprehensive range of lenders and products, including exclusive deals that you might not find on your own.
  • Competitive Rates: They work to find you the most competitive rates, potentially saving you thousands over the life of your mortgage.

Time and Stress Savings ⏰

  • Streamlined Process: Leave the paperwork and negotiations to the experts, freeing up your time and reducing stress.
  • One-Stop-Shop: From application to approval, they manage the entire process, ensuring everything is handled efficiently.

Long-Term Partnership 🤝

  • Ongoing Support: Even after your mortgage is finalised, brokers are there to assist with future financial needs and remortgaging options.

Thinking of making a move? Connect with a Portlethen Financial Services today and unlock the door to your new home with confidence! 🗝️✨

#HomeBuying #MortgageBroker #FinanceTips #Remortgage #HomeSweetHome

Shared Equity House Purchase

Published on by David

Shared Equity schemes – The First Home Fund relaunched on 1st April and 7 days later all the funding from the Scottish Government had been allocated and applications closed.

If you were hoping to use this scheme to help with the purchase of your first home then have you considered the other shared equity schemes available?

Mortgage Advice

Help to Buy

The Help to Buy Smaller Developers New Build scheme Affordable New home scheme is for new build property being sold by registered home builders. This is available for both home movers and first time buyers but there is a maximum purchase price which is £200,000 with the maximum assistance available 15% of the purchase price.

A list of the smaller developers under this scheme is available at Help to Buy (Scotland) Smaller Developers New Build Scheme.

New Supply Shared Equity (Home Builder)

This is open to First Time Buyers but you can also be considered where you may have previously owned a home and have experienced a significant change to personal circumstances such as a martial breakdown. The scheme can also apply a maximum household income which if exceeded would mean that you would not qualify.

This scheme is available via some housing associations and house builders. This can be as part of the planning permission to build a set number of affordable homes.

The assistance available will range from 20% to 40% of the purchase price of the property. And you are required to contribute typically 5% deposit from your own funds. 

You will own 100% of your new home but the Scottish Government will take a security over the property for the percentage of the assistance provided. A version of this scheme is also offered from some Housing Associations / builders with the shared equity loan being split between the Scottish Government and Housing Association / builder.

More information is available at https://www.mygov.scot/new-supply-shared-equity-scheme/overview/

LIFT Open Market Shared Equity Scheme (OMSE)

With this scheme there are restrictions on the maximum purchase price and size of property that can be purchased depending on where the property is located.

If accepted, you are then able to purchase a property that is being sold on the open market and are given a 3 month time period to secure a property which needs to be approved by the scheme prior to making a offer on it.

You must contribute towards the purchase with the maximum mortgage you can obtain plus any deposit you have available. You can get between 10% and 40% assistance from the Scottish Government in the form of an equity loan. If with the mortgage available and your own deposit you can raise more than 90% of the purchase price you will not be eligible for the scheme.

https://mortgagebrokeraberdeen.com/lift-shared-equity

Financial Advice

Whether a first time buyer or a looking to move home getting the correct financial advice is the key to making your plans a reality. To discuss the different shared  equity schemes and get the mortgage advice you need get in touch with David on 01224 679330 or email david@portfs.co.uk.

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

Shared Equity Home Purchase Schemes

Published on by David

Mortgage Advice

If you are looking to purchase a new home then there are a number of “shared equity” schemes available from the Scottish Government to assist and I have summarised below details of these shared equity schemes. 

First Home Fund

The Scottish Governments First Home Fund has proved very popular since its launch and has now run out of funding for the current financial year. The scheme will reopen in the New Year for applications from First Time Buyers for purchases completing between April 2021 to March 2022. (for more information on the First Home Fund head over to https://mortgagebrokeraberdeen.com/first-home-fund)

The First Home Fund is the most flexible of schemes available to assist First Time Buyers but it is not the only “Shared Equity Scheme” available.

LIFT Open Market Shared Equity Scheme (OMSE)

With this scheme there are restrictions on the maximum purchase price and size of property that can be purchased. This is based on the area in which the property is being purchased and the size of property allowed for your household.

If accepted, you are then able to purchase a property that is being sold on the open market. You must contribute towards the purchase with the maximum mortgage you can obtain plus any deposit you have available. You can get between 10% and 40% assistance from the Scottish Government in the form of an equity loan. If with the mortgage available and your own deposit you can raise more than 90% of the purchase price you will not be eligible for the scheme.

https://mortgagebrokeraberdeen.com/lift-shared-equity

New Supply Shared Equity (New Builder)

This again open to First Time Buyers but can also be considered where you may have previously owned a home and have experienced a significant change to personal circumstances such as a martial breakdown. The scheme can also apply a maximum household income which if exceed would mean that you would not qualify.

The assistance available will range from 20% to 40% of the purchase price of the property. You will own 100% of your new home but the Scottish Government will take a security over the property for the percentage of the assistance provided.

More information is available at https://www.mygov.scot/new-supply-shared-equity-scheme/overview/

Help to Buy

The Help to Buy Affordable New home scheme is for new build property being sold by registered home builders. This is available for both home movers and first time buyers but there is a maximum purchase price which is £200,000.

The maximum assistance available is 15% of the purchase price.

How the scheme works – https://mortgagebrokeraberdeen.com/category/help-to-buy

Mortgage Advice

To find out more about the different schemes and whether you would qualify and if they would be of benefit to you get in touch with David who will be able to review your mortgage options.

Call David on 01224 784030

Email david@portfs.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage.

Help to Buy ISA

Published on by David

Are you a First Time Buyer and saving for your deposit?

Then let the government boost your savings by 25%!!!

If you save in a Help to Buy ISA you will get a £50 bonus for every £200 you save up to a maximum bonus of £3,000.

Entry to the Help to Buy ISA closes on 30th November 2019

How does it work?

Help to Buy ISA’s are available from a range of banks and buildings societies and the accounts are available to each first time buyer. So if you are purchasing jointly then you can each benefit from the 25% bonus provided you each save the minimum amount required. If you both save the maximum allowable that a combined bonus of £6,000.

You can open the account with any amount but in your first month you can deposit a lump sum of up to £1,200 and then save up to £200 per month.

Once you have saved a minimum of £1,600 you qualify for the 25% bonus. The maximum bonus is £3,000 and this would mean saving £12,000 to qualify for it.

Your solicitor will collect the government bonus amount and this will be used along with your savings towards the deposit for your first home.

To qualify for a Help to Buy: ISA you must:

  • be 16 or over
  • have a valid National Insurance number
  • be a UK resident
  • be a first time buyer, and not own a property anywhere in the world
  • not have another active cash ISA in the same tax year: If you have opened a cash ISA this tax year, you can open a Help to Buy: ISA but will have to take additional steps.


To qualify for the government bonus, the property you are buying must:

  • be in the UK
  • have a purchase price of up to £250,000 (or up to £450,000 in London)
  • be the only home you will own
  • be where you intend on living
  • be purchased with a mortgage

If you have any questions on mortgages or saving for your deposit for your new home than please get in touch.

Your property may be repossessed if you do not keep up repayments on your mortgage.

Portlethen Financial Services

Mortgage Advice Aberdeen

 

David Butler specialises in providing mortgage advice tailored to your specific circumstances and mortgage needs. To arrange a free mortgage and insurance review get in touch.