Experts paint quite a grim picture for first time buyers in Colchester. Recent reports show that it is increasingly difficult to get on the housing ladder in this part of the country, and experts blame the cost of housing in the area. The figures show that the average person buying in Colchester would have to be earning nearly £60,000 a year in order to get an 80 percent mortgage on the typical home in the town.
And it is not just income that matters when it comes to buying a first home in Colchester. The size of the deposit matters, too. In an ideal world you will have a good income and a deposit of up to 25 percent of the value of the property. But in the real world, many buyers in Colchester have no deposit at all. Can you get a mortgage with no deposit?
Getting a Mortgage Without a Deposit
It is very rare to get a mortgage with no deposit, but it is not impossible. In Colchester and the rest of the country the only 100 percent mortgage that is still on the market is the guarantor mortgage, which is where a family member who already has their own home is listed additionally on the mortgage. Their property will be at risk if the payments on the new mortgage are not made on time. They may also be able to use their savings as a form of security to safeguard the loan, and will put this money into an account where it will stay until a set amount of the mortgage has been paid off.
Buying With a New Build Developer Loan
Sometimes, according to one of the mortgage brokers colchester offers, you will be able to borrow the amount for the deposit from a developer when you buy one of their new build homes. In this case you will need to factor in repayments for the developer as well as repayments for the mortgage.
Buying a Home with a Small Deposit
Since it can be very difficult to buy with no deposit whatsoever, it can help if you manage to save up a small deposit and then use a scheme designed to help people with minimal deposits get on the property ladder. For example, Help to Buy gives you an equity loan where you borrow the money you need for a deposit and pay it off over time. Shared Ownership is another scheme that can help when you have a small deposit. The property is part owned by a housing developer or a local authority and you will pay rent as well as mortgage repayments.
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