Housing Giant Helps First Time Buyers

Is Barratt REALLY helping?

Just for 5% down payment and first-time buyers can have their own dreamed property.
80% mortgage from high street lender, a second 15% loan (this your parents will take), more like bridging, from Barratt with own contribution of only(?) 5% will make you a homeowner.
This is 95% loan! I’m curious how many first-time buyers will be able to afford monthly payments? What do you think will happen with the value of their properties after the purchase? Usually it goes down for new builds, so this tiny equity may disappear over night but … please, feel free, read the below article and make your own mind.

Published by Mortgage Rates
on Wednesday, 12 January 2011 by Mark Johnston
One of the UK’s biggest property developers, Barratt has launched a new scheme to help first time buyers buy their first home. The Scheme will allow parents to help their children get onto the property ladder by taking out an unsecured loan to cover the cost of a deposit.

The new initiative which is a joint venture between Barratt and the financial services arm of Japanese company Hitachi will offer loans of up to £50,000. The loan will allow parents to take out unsecured borrowing to cover the deposit for a home for their children.

Barrett hopes that the new scheme will allow first time buyers to obtain a 80% loan to value mortgage as with just a 5% deposit with the remaining 15% being covered by the loan taken out by the buyers parent. This may seem like a great deal for those who have struggled to find a mortgage to cover their dream home but in the current economic climate, many will find it difficult to find willing parents.

The loan can be taken …

Tags: Barratt, deposit, first-time buyer, loan, mortgage, new home, property

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