According to Linden Homes, as affordability becomes more of an issue for first-time buyers, it is not just raising the deposit that is becoming a struggle, but also meeting monthly mortgage repayments.
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Linden Homes is helping by offering to subsidise first time buyers mortgages for the first two years of their property ownership, reducing monthly repayments to just £499 per month.
Customers are required to pay a minimal 5 per cent deposit, then as well as subsidising the remaining mortgage to reduce repayments to £499 per month, Linden Homes pays stamp duty tax and also gives the first time buyer £500 towards legal fees. After the initial two years, the customer can remortgage if necessary to find the most manageable ongoing deal.
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While most schemes aim to help raise a deposit or offer 100 per cent mortgages, this deal will help first time buyers who have access to a 5 per cent deposit but are concerned about managing repayments as interest rates go up.
Philip Davies, Chief Executive of Linden Homes comments: House-builders are in a unique position to offer help to first time buyers, which they cant receive from the second hand market. We know first time buyers are a vital ingredient of a healthy housing market and in a climate of rising house prices and increasing borrowing costs, we must find creative ways of improving affordability.
Despite rising interest rates, many first time buyers are still keen to buy their first property and take a fixed rate deal, enabling them to plan their finances in the knowledge that their repayments will remain stable.
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