We are starting to see some innovation within the mortgage market and it is great to see Woolwich launch a new mortgage deal aimed at buyers with a restricted deposit. Their new mortgage deal is available at 95% and has been called the “Family Springboard Mortgage”
How does the deal work?
If you are looking to buy and have a 5% deposit and you have family members who are willing to assist you with the purchase then the Springboard mortgage is for you. If your family members are willing to deposit an amount equal to 10% of the purchase price into a separate savings account the 3 years, and at the same time earn interest on their savings then this new mortgage is for you. Your family’s savings are safe, guaranteed and returned after 3 years and you will get an attractive interest rate with only a 5% deposit.
The benefits – To you
- A very competitive interest rate
- Only a small deposit needed
- You receive assistance with your property purchase rather than a hand – out
- The property is all yours, your family have no rights over the property
The benefits – To your family
- They can assist you with the house purchase without handing over their savings
- They receive competitive interest on their savings whilst helping you get a better mortgage deal
- They are not ‘guaranteeing’ the mortgage that you are taking out so overall less risk than the traditional ‘guarantor’ type mortgage
If you would like further details on what shared ownership mortgages could be available to you, contact our team to discuss your requirements or fill in our online mortgage enquiry form today and we will be in contact with you.