I heard with interest that Barratts have launched a First Time Buyer Scheme. The scheme allows first time buyer’s parents to borrow 15% of the purchase price on an unsecured loan basis with a fixed rate of 5.4% and run for up to 12 years. The scheme has no early repayment charges and a limited overpayment will be allowed penalty free. This will enable first time buyers to have a mortgage of 80%, put down a 5% deposit with the remaining 15% funded by the parents through a loan from Hitachi.
As I have mentioned before, first time buyers have been badly hit in this economic downturn and the average age of a first time buyer is now 37.
I am in discussion with a national builder with development sites in Scotland to see if they would be in a position to offer something similar and I shall let you know as soon as I have some more information to report.
Head of Property Services
- Barratt loan lets parents and children raise mortgage deposit (guardian.co.uk)