New 98% LTV mortgage helping first-time buyers onto the property ladder
TL;DR:
A new 98% LTV mortgage allows first time buyers to purchase a home with a deposit of only 2% – and some providers now accept new builds! If you have a strong, reliable income, but only limited savings, this could be a great opportunity to get your foot on the property ladder sooner than expected.
A 2% deposit could be enough to buy your dream home
Building up a deposit is often seen as the biggest hurdle standing between first time buyers and a home of their own. However, with new LTV mortgages offering up to 98% of the property’s value, a deposit of just 2% could be enough to secure your first home.
To put that in real terms, on a property worth £200,000, a 2% deposit would be just £4,000 – in contrast to the £10,000 required for the standard 5% deposit. For many buyers, that difference could be enough to make home ownership possible years before previously planned.
The mortgage is available on a two-year fixed rate – currently priced at a competitive 5.89% – giving you the reassurance of predictable monthly payments as you settle in to enjoy your brand new home.
Why a 98% mortgage is good news for new build buyers
Most of the low-deposit mortgages that have been available over the past year have left out new builds, focusing exclusively on older properties.
The new 98% LTV mortgages change this. New builds are now accepted, easing the road to home ownership for a wider group of prospective buyers. If you’re a first time buyer looking to buy a brand new home, this is a brilliant opportunity!
What’s on offer
- Available to first-time buyers only
- Up to 98% loan-to-value – Just a 2% deposit required
- Gifted deposits accepted – Helping hands from parents or in-laws are allowed.
- Minimum property value of £100,000
- Maximum loan amount of £500,000
- Borrowing available up to 5.5 times household income
- New build houses now accepted – New build flats are excluded.
- Self-employed applicants also considered
The benefit to buying sooner
The real bonus to this offer is the accelerated path to home ownership. Every month that is spent saving is yet another month of rent – and potentially another month of chasing a moving target! Buying today allows you to start building equity in your own property from the outset, and you lock in today’s prices instead of tomorrows.
If you have a strong, reliable income, but have been unable to build up substantial savings, this 98% mortgage allows you to buy sooner – no several-year wait as you build up a deposit!
Other routes to home ownership for first-time buyers
A 98% mortgage is only one route of many when it comes to owning your own home. At Wain Homes, we have several other schemes designed to help you get your foot on the property ladder:
- 0% Deposit and Rent-to-Own mortgages – If you’re able to pay rent reliably, but haven’t been able to build up enough savings, this is a great option.
- Own New Rate Reducer – Exclusive to new build homes. It uses the builder incentive on your plot to bring down your mortgage rate during the initial fixed period, leading to noticeably lower monthly payments in the first few years.
- Armed Forces Help to Buy – Eligible Service personnel may be able to borrow up to 50% of their annual salary (capped at £25,000) interest-free.
- NHS Discount Scheme – A £15,000 incentive for NHS workers buying a brand new Wain home.
Already own a home? You may still be eligible for some of our schemes, including Part Exchange, Part Exchange Plus and Movemaker – all help to keep the road to home ownership smooth.
Ready to find out what your options are?
If your dream of home ownership still feels a distant prospect, think again! This brand new 98% LTV loan for new build property could be your chance to get onto the property ladder – today!
Looking to pick out your home already? Browse our currently available Wain Homes’ developments.
For more details, contact our team to learn more.
Mortgage products are subject to availability, status, eligibility and lender criteria. The 98% loan-to-value mortgage referenced in this article requires a minimum 2% deposit and is available to eligible first-time buyers only. The stated 5.89% two-year fixed interest rate and all product criteria were correct at the time of publication and may be changed or withdrawn by the lender at any time. The amount you can borrow will depend on your individual circumstances and affordability assessment. A mortgage offer is not guaranteed.
The information provided is for general guidance only and does not constitute financial or mortgage advice. Wain Homes is not authorised by the Financial Conduct Authority and cannot provide financial or mortgage advice. You should seek advice from an FCA-authorised mortgage adviser or lender before making any financial decisions.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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