More attractive rates for lending to 95% which makes borrowing to buy a first home more affordable Helping first time buyers by boosting their savings to bring the deposit to 10% of the price can result in significant savings on the monthly payments as 90% loan to value products then come into range. Mortgages to the age of 70 are now normal and 75 is becoming more common. The longer term mortgage makes the monthly payments more affordable, but the total interest paid will be higher. The increasing age limits are especially useful for older first time buyers.
Some mortgage companies allow the gift of a deposit from a family member as long as the money is a true non repayable gift. Older generations can take pleasure from seeing the life changing benefits of home ownership their help can bring to the younger members of the family.
Mortgages that allow the family to help obtain the mortgage – either as guarantor, or making offset savings available, can be useful to aid first time buyers. There are a limited number of products where the parent can be assessed with the borrower for the loan without being named on the deeds. In the initial consultation particular emphasis is placed on the borrowing capacity, total costs including monthly payments, purchase costs, & stamp duty.