Colchester is suffering from a lack of affordable accommodation which is making it increasingly difficult for first time buyers to get on the property ladder, according to property experts in Essex. In some rural parts of Colchester it has become impossible for people to continue living in the village once they have grown up and no longer want to live with their parents, since wages have not kept up with property price rises.
Colchester remains popular with first time buyers due to its amenities, the quality of the housing, and the proximity to the capital. And it is possible for people to buy a first home in the town. There are a variety of mortgages available to first time buyers that can make property in Colchester affordable to many people.
- Guarantor Mortgages
A guarantor mortgage allows you to buy a house when you have a deposit of less than 5 percent, or sometimes even when you do not have any deposit. In order to get a guarantor mortgage you will need to have a friend or a relative named on the mortgage who will act as guarantor to the loan, meaning that if you do not pay then they will guarantee to pay, often using their own property as security.
- Help to Buy Mortgage
According to a prominent mortgage advisor colchester offers, the Help to Buy mortgage is provided by the government and it acts as an equity loan where you borrow money towards the deposit, which you then repay at a later date. You will need to have at least 5 percent deposit as a starter, and then you can borrow an amount that will cover up to 20 percent of the house price.
- Help to Buy ISA
It’s not a mortgage, but the Help to Buy ISA could help you get a mortgage as it will help you save a larger deposit. It is a form of savings account where you put in money and you get a bonus from the government up to the value of £3,000 a year.
- Shared Ownership
You can buy a property when you pay part rent and part mortgage, and the ownership of the property is shared between you and the housing developer or the local authority. As time goes on you can add more money into the purchase so that you own more of the property.
- New Build Developer Loans
If you buy from a developer you can often get a loan from them that will cover the deposit. You then pay back the deposit as well as the mortgage repayments.
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