Accord 5k Mortgag

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

Published on by David Category: First time Buyer

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 Category: First time Buyer, Mortgage Tips

🏡 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

Mortgage Rates

Published on by David Category: Uncategorized

Mortgage rates have been steadily increasing over the last 18 months and will likely stay higher than we have become accustomed to over the last 10 years.

*Source Bank of England Monthly Interest rate of UK financial institutions sterling 2 year (90% LTV) fixed rates.

Whether your current fixed rate is ending in the next 6 months or 24 months you should start to think and plan for higher payments.

What should you be doing?

If the rate is ending in the next 6 months then you should be speaking to your mortgage adviser to start a review of the mortgage rates available from lenders so that a new rate can be secured ready for the current rate ending. This could be a new rate from your current lender or a remortgage to a new lender whoever is going to give the best rate to suit your personal circumstances.

No matter when the current rate ends, if you can, start to make overpayments to your mortgage. Most lenders will allow overpayments of 10% of the outstanding mortgage balance per annum without penalty.

This will get you used to a higher monthly payment ready for the current rate ending but will also reduce the mortgage balance which could mean a lower loan to value when it is time to review rates available. The rates from lender are typical tiered based on the loan to value percentage with rates lower the more equity in the property.

To discuss your mortgage options and rates available get in touch to arrange a review.

Call David or email mortgage@portfs.co.uk

We offer a comprehensive range of first charge regulated mortgage contracts from over 65 lenders across the market but not deals that you can only obtain by going direct to a lender.

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

 

Shared Equity Schemes

Published on by David Category: Shared Equity

Shared Equity Schemes

LIFT Open Market Shared Equity Scheme (OMSE)

Shared EquityWith this Shared Equity scheme there are restrictions on the maximum purchase price.This based on the area in which the property is being purchased and the size of property.

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.

You do not have any monthly payments for the equity loan and are not charged interest but on sale of the property you have to repay the percentage of equity assistance provided based on the sale price of the property.

https://mortgagebrokeraberdeen.com/free-review-get-in-touch

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.

This scheme is offered by social landlords/housing associations and by some approved house builders.

Low-cost Initiative for First Time Buyers (LIFT) – Homeowners – gov.scot (www.gov.scot)

Mortgage Advice

To find out more about the 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 on 01224 399129

Email david@portfs.co.uk

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

 

Cost of living and rising interest rates. How will it affect your mortgage?

Published on by David Category: Uncategorized

Cost of living

With the cost of living increasing and inflation at 5.4%* the Bank of England has increased their base Lending Rate to 0.5%.This will no doubt mean that lenders will increase the rates available for mortgages.

If you have taken out a new mortgage in the last 10 years you will have benefited from the low interest rates that have been available. But if you are looking to move home or your deal is ending, then the rates available will be higher than you have been paying. The rates available from lenders vary depending on the size of deposit you have available or the equity in your home (if remortgaging) with lower rates available the more equity/deposit you have.

The other impact due to the higher rates of interest and cost of living is loan size available. Lenders use affordability calculations to work out the size of loan they will offer, and these calculations consider living costs, loan/card payments and interest rates to determine the size of mortgage. Most lenders will use figures from the Office of National Statistics (ONS) for living costs and with these on the rise lenders will be adjusting their affordability calculations.

There is no standard formula for affordability with the loan size varying between lenders.

If your mortgage deal is ending or you want to move to a new home, then get in touch and we can review the mortgage options available to ensure that you get the best rate for your individual preferences and assess the loan size available from lenders.

Email david@portfs.co.uk

Telephone David on 01224 679330

*(ONS CPI rate for 12months to December 2021)

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