First-time buyers will find it easier to get on to the property ladder thanks to the introduction of a zero-deposit mortgage. With rents constantly rising and sterling low due to the uncertainty surrounding Brexit, owning a property can be impossible for many young people. However, Halifax has come up with a new initiative to assist young people to take that first step on to the property ladder.
The bank will give first-time buyers a mortgage without requiring a deposit. However, a family member must contribute ten per cent of the property price. Halifax will then pay 2.5 per cent in interest on the money paid in. This sum will then be available to withdraw after three years.
Mortgage Is Fee-Free as an Added Incentive
The Halifax Boost is a three-year fixed-rate mortgage with an interest rate of 2.9 per cent. As an added incentive, there are no fees attached to the mortgage.
To be eligible, however, either the buyer or the family member will be required to have a fee-free Halifax Reward account or an Ultimate Reward current account. Following the three-year period, the family member will see their ten per cent sum refunded, along with the generous 2.5 per cent interest. There are some disadvantages to the scheme. Missing payments means the bank can take back cash from the ten per cent per cent sum donated by the family.
Financial Software Is a Modern Management Solution for Professionals
Before signing up to the scheme, families can receive independent financial advice to see if this is something that is suitable for them. Advisers will use financial advisor software such as that from www.intelliflo.com to make the process easier.
According to The Times, a number of new deals have come on the market, which is good news for those seeking to get on to the ladder. Access to properties for first-time buyers has come under the spotlight in recent years, and with prices soaring to all-time highs, there were fears that the market would no longer be accessible for young people.
According to Halifax, the average homeowner’s deposit has soared to just over £41,000 this year, compared to just over £27,000 ten years ago. However, to make sure you’re accessing the correct mortgage for your personal needs, it’s always best to seek advice from an advisor before signing up to anything.