child mortarboard gbp briefcase bath coffeecup tree twitter search crosshair fax house papers sort house-pound brochure list-items notes printer video-camera video virtual-video bath bed camera floorplan heart-empty heart-filled heart-empty-thin heart-filled-thin sofa calculator compass share clock list map-pen map-pin pencil save business-card letter phone heard people pointer cross linkedin google-plus facebook arrow-right close triangle-down my-wink my-wink-thick house-circle loading-spinner bell close-circle dog link pinterest school transport wardrobe arrow-up one two three four five six seven tick

Houses for sale in Devon: a fresh route to home ownership

Houses for sale in Devon and Exeter have just got a little easier to buy thanks to a new type of mortgage on the market. Dubbed 'the family mortgage' and launched by the UK's first new building society in over 30 years, the loan allows family members to use cash or equity to guarantee a mortgage of a relative. The Family Building Society wants more young buyers to get on the housing ladder so it is offering home loans with a low 5% deposit, providing relatives can act as a guarantor. Devon estate agents agree any new initiative designed to help home movers is welcome. There are some magnificent houses for sale in the wider south west region, so the new mortgage is a timely addition to the lending scene. The cost of living - even in our part of the country - coupled with rent levels - mean many first-time buyers have been trapped living with parents or in rented accommodation, while other people haven't been able to move up the property ladder. The 'family guarantor' mortgage actually joins a number of other initiatives designed to get people moving - whether they are property novices or looking to upsize. Winkworth estate agents in Devon suggest all home movers explore the following options on the road to a new home:- The 'family mortgage' Guarantor mortgages - where a relative formally agrees to vouch for a borrower in financial terms - is not a new concept but the recently-released product from the Family Building Society allows relatives to stay in control of their savings rather than actually make a cash donation. A family member must deposit 20% of the property's value into a savings account set up by the building society, although the money will remain untouched. However, the savings can't be withdrawn for 10 years and there are options with regards to interest payments - with the guarantor either choosing to continue to receive interest, or forgo interest to make repayments cheaper for the buyer. The 'frozen savings' fund allows the buyer to secure a loan with a 5% deposit, making a purchase more affordable. Relatives can also become a guarantor using the equity in their home in a 'pledge' gesture. A combination of the above involving multiple relatives is also possible. Help to Buy - Mortgage Guarantee The Government-backed Help-to-Buy Mortgage Guarantee scheme is open to all buyers as long as they are purchasing a property worth less than £600,000; the purchase is the only home they own and the property is not intended for buy-to-let purposes. A buyer using a special Help to Buy mortgage can secure a loan with a 5% deposit. The Government and the bank jointly guarantees up to the next 15% of the property's value. This part of Help to Buy is due to run until 2016, and applies to all homes, not just new build. Help to Buy - Equity Loan Open to buyers of just new build homes, the Help to Buy Equity Loan scheme is a loan from the Government to help with a deposit. A buyer must put forward a 5% deposit, and the Government will loan the rest up to 20%. The remaining 75% of the purchase price must be funded by a mortgage, and the Government loan will need to be paid back. The same restrictions as the Mortgage Guarantee scheme apply to the Equity Loan initiative. This scheme has been extended to run until 2020. House builder incentives Buyers of brand new homes can also benefit from money-saving incentives. Many house builders will try and attract buyers with financial perks. It's not unusual to find offers such as legal fees paid, stamp duty paid and even free floor coverings at new build schemes in the county. These incentives can help buyers who are struggling with the immediate financial outlay associated with moving home - potentially allowing thousands of pounds that would have been spent on fees and taxes to be diverted to a deposit.

Houses for sale in Devon and Exeter have just got a little easier to buy thanks to a new type of mortgage on the market. Dubbed 'the family mortgage' and launched by the UK's first new building society in over 30 years, the loan allows family members to use cash or equity to guarantee a mortgage of a relative.

The Family Building Society wants more young buyers to get on the housing ladder so it is offering home loans with a low 5% deposit, providing relatives can act as a guarantor. Devon estate agents agree any new initiative designed to help home movers is welcome.

There are some magnificent houses for sale in the wider south west region, so the new mortgage is a timely addition to the lending scene. The cost of living - even in our part of the country - coupled with rent levels - mean many first-time buyers have been trapped living with parents or in rented accommodation, while other people haven't been able to move up the property ladder. The 'family guarantor' mortgage actually joins a number of other initiatives designed to get people moving - whether they are property novices or looking to upsize.

Winkworth estate agents in Devon suggest all home movers explore the following options on the road to a new home:-

The 'family mortgage'

Guarantor mortgages - where a relative formally agrees to vouch for a borrower in financial terms - is not a new concept but the recently-released product from the Family Building Society allows relatives to stay in control of their savings rather than actually make a cash donation. A family member must deposit 20% of the property's value into a savings account set up by the building society, although the money will remain untouched. However, the savings can't be withdrawn for 10 years and there are options with regards to interest payments - with the guarantor either choosing to continue to receive interest, or forgo interest to make repayments cheaper for the buyer. The 'frozen savings' fund allows the buyer to secure a loan with a 5% deposit, making a purchase more affordable. Relatives can also become a guarantor using the equity in their home in a 'pledge' gesture. A combination of the above involving multiple relatives is also possible.

Help to Buy - Mortgage Guarantee

The Government-backed Help-to-Buy Mortgage Guarantee scheme is open to all buyers as long as they are purchasing a property worth less than £600,000; the purchase is the only home they own and the property is not intended for buy-to-let purposes. A buyer using a special Help to Buy mortgage can secure a loan with a 5% deposit. The Government and the bank jointly guarantees up to the next 15% of the property's value. This part of Help to Buy is due to run until 2016, and applies to all homes, not just new build.

Help to Buy - Equity Loan

Open to buyers of just new build homes, the Help to Buy Equity Loan scheme is a loan from the Government to help with a deposit. A buyer must put forward a 5% deposit, and the Government will loan the rest up to 20%. The remaining 75% of the purchase price must be funded by a mortgage, and the Government loan will need to be paid back. The same restrictions as the Mortgage Guarantee scheme apply to the Equity Loan initiative. This scheme has been extended to run until 2020.

House builder incentives

Buyers of brand new homes can also benefit from money-saving incentives. Many house builders will try and attract buyers with financial perks. It's not unusual to find offers such as legal fees paid, stamp duty paid and even free floor coverings at new build schemes in the county. These incentives can help buyers who are struggling with the immediate financial outlay associated with moving home - potentially allowing thousands of pounds that would have been spent on fees and taxes to be diverted to a deposit.

Related posts

Think dream home? Think South West

Ask people to imagine their dream home and they might tell you about roses around the door, a walk-in wardrobe or even a swimming pool. Everyone has their own idea of what makes the perfect property but two new surveys have actually quantified what the UK dream home really consists of. Winkworth wasn't surprised to learn that the most popular choice among Britons was a...

Read post

July 30, 2015

New blockbuster set in Dorset looks set to add to the county's appeal

It was as recent as January 2015 that Dorset estate agents were fighting off home buyers who had turned to the county in light of TV show Broadchurch. The drama had shown off Dorset's brooding charms to such an effect that many estate agents claim the airtime has had a positive effect on house prices. Now a new wave of Dorset fans is set to...

Read post

May 26, 2015

South west property market set to outperform London

In a reversal of fortunes London is no longer leading the way in house price growth, report Devon estate agents. In fact, house prices in the South West are deemed more 'healthy' than in the capital city for the first time in six years, according to a new study of the housing market. The Centre for Economics and Business Research UK predicts that house prices...

Read post

May 06, 2015

Find your Local Office

Find your Local Office

Speak to people who, quite simply, love their patch and love what they do.

Get a Free Valuation

Get a Free Valuation

Thinking of selling or letting your property, or just interested to know what it is worth nowadays?