According to research conducted in July 2022 by Rightmove, the asking price of the average first home (defined by the property website as houses with 2 bedrooms or less) has risen three-times faster than pre-pandemic speed.
With the recent announcement that the government are closing their Help to Buy Scheme to new applications from October 2022, we believe other niche lending such as Shared Ownership and Family Assisted mortgages and new government schemes such as First Homes are becoming more important than ever.
Whilst there is some uncertainty in the housing market, there is undoubtedly need for lenders to continue to aid first time buyers and show some innovation in the mortgage space to help them achieve their home ownership goals. Luckily, here at Newbury, we have a range of options at our fingertips to give your clients the best chance of owning the first home they’ve been dreaming of.
If you have clients who lack the financial history to prove they could fulfil their monthly mortgage payments, or who just need a bit of extra borrowing power, a joint-borrower sole proprietor mortgage (JBSP) is a great stepping-stone to financial independence. Many first-time buyers haven’t heard of JBSP, but it can be a useful arrangement that provides support until they are ready to fly solo and remove the joint-borrower from the arrangement. We also have plenty of experience in splitting mortgages by term, product, or repayment method to make things as flexible as possible.
Now the government’s Help to Buy scheme has ended (although we can still help with Help to Buy remortgages), the need for a lender who understands the scheme in its entirety and who can transparently weigh up the positives and negatives with your client in mind is critical. Shared Ownership is another possibility that could maximize the number and types of properties available, and with 20 years of experience, we like to think of ourselves as somewhat of a ‘veteran’ in this market, with the ability to provide highly specialised advice to your clients.
We don’t just say yes to the Bank of Mum and Dad, but also the Bank of Granny and Grandad. According to recent research by Aviva, this kind of arrangement is on the up, with 1 in 4 grandparents now coughing up gifted deposits to help first-time buyers in their families. We can help your clients climb the property ladder with the help of a family member, whether that’s via a gifted deposit, a joint-borrower sole proprietor mortgage as mentioned above, or even additional borrowing on the family home.
We’re ready and waiting to become your clients’ first-home hero. Contact the team here.
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