First time buyer products

Missed the stamp duty boat so jump on board the first-time buyer schemes bus instead. there will be no avoiding the disappointment that the stamp duty savings could have had but at least there are lenders trying to aid FTB, the £5k deposit mortgage from Accord gives them the ability to borrow with a much smaller deposit, lower than even 5% in many cases, Skipton still have their track record mortgage product for those renters struggling to build up a deposit and of course Gen H have just brought to market a new scheme, “The New Build Boost” the product is open to borrowers with a minimum 5% deposit and Gen H will give them a mortgage at 80% loan to value (LTV). The 15% gap will be filled by an interest-free loan. the downside is that at present its a new build option only available from Persimmon homes, they do plan to open this to other new build companies, but this will take time. As a mortgage broker it is imperative that we showcase all the positives that we can.

There are still options available to first-time buyers that can help make home ownership a reality.

Several lenders have "boosted" income multiples for first-time buyers who meet certain criteria. This gives them a higher level of borrowing capacity than would otherwise be the case.

There are also lenders who offer products requiring 5% or even less of a deposit. These can be very attractive to higher-earners who may already be paying significant amounts each month in rent, and therefore struggle to save a meaningful deposit.

Some lenders also offer products targetted at specific professions where they lend more or offer prefernetial rates given the more uniform career progression that might be expected.

It's always worth speaking with a mortgage broker to understand borrowing capacity as every situation is unique.

While the stamp duty reduction for first-time buyers is ending, several schemes are still available to help them onto the property ladder. Shared Ownership allows buyers to purchase a share of a property and pay rent on the rest, reducing upfront costs. First Homes Scheme offers discounts of at least 30% on eligible new builds. Some lenders also provide low-deposit mortgages, including 100% options for renters with a strong track record, which Skipton offers. Lifetime ISAs can boost savings with a 25% government bonus. While the stamp duty relief was helpful, there are still plenty of options to explore.

There are a lot of options to help people get on the property ladder now, either when they do not have a large deposit or they need an affordability stretch. Nationwide's Helping Hand Scheme has been really successful at allowing first-time buyers to borrow slightly more to get the property they want. The Yorkshire Building Society £5,000 deposit scheme has also been popular along with options like Skipton's Track Record mortgage, where renters get on the property ladder if they can demonstrate they have been good tenants.

Don't let the stamp duty relief expiry dim your homeownership dreams. The market continues to offer numerous accessible pathways for first-time buyers through innovative lending solutions and targeted support schemes.
Skipton's Track Record mortgage provides 100% financing for consistent renters, while Shared Ownership and First Homes schemes significantly reduce initial costs. Low-deposit options from Yorkshire Building Society, enhanced affordability through Nationwide's Helping Hand, and government-boosted Lifetime ISAs all represent viable alternatives to the expired tax relief. Though the landscape has shifted, prudent advice from mortgage professionals can help navigate these options to identify the most appropriate route based on individual financial circumstances and property aspirations.