What options are available to first-time buyers with little or no deposit? This is the question Scott Barron of SJ Mortgages is exploring in his latest Q&A
The Question
I’ve noticed Skipton has a mortgage which is deposit-free. Are there any mortgages available which I can apply for which have no deposit?
I’m struggling to save up for a deposit for my first home because I am throwing all my money away renting. I don’t have any debt at all, other than a student loan, and I’ve got a good credit rating. I’m paying £1,200 a month for rent at the moment. Thanks for any advice.
Scott’s Answer
You are correct Skipton does offer a 100% mortgage and it is the only lender which offers this type of loan at the moment.
A 100% mortgage has its pros and cons. One of the biggest advantages is that you do not have to save a cash lump sum for a deposit, and this is beneficial for those who are already renting.
The cons are that this type of mortgage comes with a higher interest rate, you will have increased risk of negative equity and they have stricter lending rules.
There are other mortgages available where family assist you as the borrower if that is an option. Feel free to give us a call to discuss your options in more detail.
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Meet our experts Scott Barron and Jack Tutton
Scott and Jack are co-founders of SJ Mortgages. With over 15 years industry experience and after working for large corporations, they decided to set up SJ Mortgages with the aim to provide their clients with expert advice alongside a bespoke service.
Being a totally independent whole-of-market brokerage enables them to be completely customer focused and deliver a great client outcome. Being whole of market means that they work with over 120 mortgage lenders and have access to over 10,000 products.
A mortgage is many people’s biggest financial commitment; in the current difficult mortgage market Scott and Jack are here to help you navigate the process and get you the best possible result.
Please click this link to their website to find more information, access to a calculator, blogs and to get in touch with SJ Mortgages.
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