Unlocking Homeownership: How Evermore Mortgage Brokers Can Help Those with Low Deposits
Navigating the world of mortgages can often seem like a daunting task, particularly for first-time buyers or those looking to secure a home with a low deposit. In a market that frequently shifts and changes, having the right support is essential. That’s where Evermore Mortgage Brokers come in—we’re here to help you find the mortgage solution that fits your unique situation.
In this blog, we’ll explore various mortgage options tailored for clients with low deposits, highlight key offerings from reputable lenders such as Tipton & Coseley, Barclays, and Accord, and demonstrate how our expert team can guide you every step of the way.
Understanding Low Deposit Mortgages
First things first—let’s clarify what a low deposit mortgage actually is. While the traditional advice often suggests saving a minimum of 20% of the property’s purchase price, many lenders now offer mortgages that allow buyers to put down significantly less.
A low deposit mortgage is typically considered one where the buyer puts down less than 10% of the property value, which can make the dream of homeownership feasible for many people who might feel priced out of the market.
However, a lower deposit can sometimes mean higher monthly payments which adds to overall costs. In essence, while a low deposit can open doors, it’s crucial to understand both the advantages and challenges it entails.
Why Work with Evermore Mortgage Brokers?
At Evermore Mortgage Brokers, we pride ourselves on our award winning, personalised approach. Our experienced team understands the intricacies of the mortgage market and is committed to helping clients with low deposits find suitable options. Here’s how we can assist:
- Expertise in Mortgage Products: We have in-depth knowledge of various mortgage products and their specific requirements. Whether it’s a family assist mortgage or a special scheme, we can help identify the right option for you.
- Tailored Service: Everyone’s financial situation is unique. We take the time to understand your circumstances, expectations, and needs before recommending the most suitable mortgage option.
- Access to Multiple Lenders: With our extensive network and relationships with a range of lenders, we can provide access to products that may not be widely advertised or available via traditional channels.
- Ongoing Support: The journey to homeownership doesn’t stop once you secure your mortgage. We’re here to offer continued assistance and guidance even once you’re settled into your new home.
The Family Assist Mortgage Range from Tipton & Coseley
One highly beneficial option for those with low deposits is the Family Assist Mortgage Range from Tipton & Coseley. This innovative scheme allows family members to assist buyers in purchasing their home, making it a more viable option for those struggling to gather sufficient savings.
How Does It Work?
- Parental Support: In this arrangement, family members can act as guarantors by using their own savings or property equity to support the financial credentials of the buyer. This secures the mortgage against the family member’s account, allowing the buyer to put down a smaller deposit—often as low as 5%.
- Flexible Terms: The family member’s contributions can be structured in various ways, allowing for flexibility based on individual circumstances. This might include using savings as a deposit or leveraging equity from an existing property.
- Shared Responsibility: While the buyer is ultimately responsible for maintaining the mortgage, having parental support can ease the pressure and potentially secure a more favourable interest rate, making monthly payments more manageable.
One of the significant advantages of Tipton & Coseley’s Family Assist Mortgage is that it opens the door to homeownership for those who may not otherwise be able to fund a sizeable deposit. With collaboration from family members, the dream of owning a home becomes a reality, all while fostering a sense of community and support within families.
Barclays Springboard Mortgage
Another fantastic option for first-time buyers or those with low deposits is the Barclays Springboard Mortgage. This product is particularly designed for those who have the capacity to make mortgage payments but who may lack sufficient funds for a conventional deposit.
Key Features of the Springboard Mortgage
- Five-Year Term: The Springboard Mortgage allows you to borrow up to 100% of the property’s value if you have a family member willing to support you. They will need to deposit a sum equal to the amount borrowed. This amount is kept in a Barclays savings account for five years.
- Potentially Bigger Borrowing Power: The structure of the Springboard Mortgage enables clients to qualify for larger loans, greatly enhancing your chances of purchasing a property in today’s challenging market.
- Release of Funds After Five Years: After five years, if the mortgage payments have been maintained, the family member’s savings will be released back to them, and you will have secured a home without the burden of a large deposit.
Barclays understands that many potential homeowners are “Mortgage Ready” but lack the funds for a traditional deposit, and the Springboard Mortgage is an innovative solution to suit these needs.
Accord Mortgage £5K Deposit Scheme
The Accord Mortgage £5K Deposit Scheme is another exciting option available for those looking to step onto the property ladder with a low deposit. This scheme is designed to offer assistance to buyers, enabling them to purchase a home even when they may not have the traditional deposit amount saved up.
How the £5K Deposit Scheme Works
- Low Initial Deposit: With Accord’s £5K Deposit Scheme, buyers can secure a mortgage with just a £5,000 deposit, significantly reducing the barriers to homeownership.
- Affordability Assessment: Accord will conduct a thorough assessment of your financial situation to determine affordability and suitability for the mortgage. This ensures that you can handle the monthly repayments without stretching your budget.
- Flexible Options: Accord provides a range of mortgage options on houses or flats, which means you can select a product that best fits your situation, whether fixed or variable rates.
One of the most appealing aspects of Accord’s scheme is that it helps young professionals, couples, and families enter the property market without needing years to save a larger deposit, making homeownership a realistic goal sooner rather than later.
How Evermore Can Guide You Through the Process
While understanding various mortgage options is fantastic, navigating the application process can still be complex. This is where Evermore Mortgage Brokers steps in to provide essential guidance.
1. Comprehensive Financial Analysis
Before diving into specific mortgage products, we’ll analyse your financial situation in detail. This includes reviewing your income, expenses, credit history, and future financial goals. With this information, we help align your desired mortgage to your current circumstances.
2. Tailored Recommendations
After understanding your financial profile, we’ll present you with tailored recommendations based on your needs. We’ll highlight the advantages of each option—be it Tipton & Coseley’s Family Assist, Barclays’ Springboard Mortgage, or Accord’s Deposit Scheme—and help you understand how each product fits into your long-term plans.
3. Assistance With the Application Process
Securing a mortgage involves paperwork, submissions, and often back-and-forth communication with lenders. We offer our expert assistance throughout the application process, ensuring you’re supported every step of the way.
4. Ongoing Support
Even after acquiring your mortgage, we remain available for any further questions or advice, whether you’re contemplating remortgaging down the line or require assistance with managing your finances.
Overcoming Challenges with Low Deposits
While low deposit mortgages represent an excellent opportunity for many people, it’s essential to be aware of potential challenges.
Higher Monthly Payments
Lower deposits typically mean higher loan amounts, which can result in increased monthly repayments. It’s crucial to evaluate your budget and ascertain what you can realistically afford in the long term.
Mortgage Insurance
This extra cost should be taken into consideration when calculating your overall mortgage expenses as it’s advisable to protect yourself!
Interest Rates
Having a lower deposit may lead to higher interest rates due to perceived risks by the lender. Ensuring you understand the terms of your mortgage and factoring these rates into your calculations is key to making informed decisions.
Conclusion
In conclusion, securing a mortgage with a low deposit doesn’t have to be an impossible task. At Evermore Mortgage Brokers, we’re dedicated to helping you explore viable options and unlock the doors to homeownership.
Whether it’s through the innovative Family Assist Mortgage Range from Tipton & Coseley, the supportive Barclays Springboard, or Accord’s £5K Deposit Scheme, we can help guide you towards a mortgage solution tailored to your needs.
Our experienced team is here to ensure that you navigate the mortgage process with ease and confidence, allowing you to focus on what truly matters—making your new house a home.
If you’re ready to take the next step towards home ownership or simply want to explore your options, contact Evermore Mortgage Brokers today for a consultation. Together, we can turn your homeownership dreams into a reality, regardless of your deposit size!
