Tag: firsttime

Tipton Building Society launches first-time buyer mortgage where you only need a 1% deposit

FIRST-TIME buyers can now get onto the property ladder with just a 1% deposit with a new mortgage from Tipton Building Society.

The deal comes as Boris Johnson yesterday revealed a new 5% mortgage deposit scheme to help create “Generation Buy”.

Tipton has bucked the trend launching a mortgage where you only need a 1% deposit

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Tipton has bucked the trend launching a mortgage where you only need a 1% depositCredit: Alamy

Specific details about how exactly the Prime Minister’s scheme will work, or when it will launch, have yet to be revealed but it comes as mortgage providers pull best buys for those with smaller deposits as they tighten lending criteria.

The coronavirus crisis has seen banks instead launch flash sales for first-time buyer mortgages as they become as “rare as Glastonbury tickets”.

But one lender bucking the trend is Tipton Building Society, which has added a new Flexible Family Assist mortgage to its range, which allows you to take out a 99% loan on your first home.

This is in addition to its existing 100% mortgage deal, which still remains.

What help is out there for first-time buyers?

GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.

Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.

Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.

Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.

Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.

“First dibs” in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.

Starter Home Initiative – A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20% discount by 2020. To receive updates on the progress of these homes you can register your interest on the Starter Homes website.

Here’s what you need to know.

How does Tipton’s new 99% mortgage

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