Tuesday, 15 February 2011

5% deposits for first time buyers

Grant Shapps, the housing minister, is demanding more help for first time buyers from lenders and housebuilding. Here are some of the ideas which the government likes.

Taylor Wimpey Take5
5% deposit from buyers.
Wimpey pays for insurance to reduce risk of default.
Restricted to houses only in East Midlands, East Anglia, East London.
Lowest rate 5.49% fixed for 2 years.

Lend a Hand from Lloyds
5% deposit from the buyers.
20% from parents or friends who want to help. They put up their savings as additional security but they earn 4% interest.
Same mortgage rate as people with 25% deposit

Barratt Developments unsecured loan
5% deposit from buyers.
The parents or guardians can borrow up to £50,000 from Hitachi finance at 5.4% interest paid for 12 years.
The extra money is used to top up the deposit to 20%.
The buyers qualify for a lower mortgage rate.

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