Getting a loan for a deposit on a house just got easier

Last post: Sep 3, 2012

A new product has just been launched that allows homebuyers borrow up to £50,000 (or £50,000 each for a couple to a joint maximum of £100,000) unsecured to place a deposit on a property.

A new product has just been launched that allows homebuyers borrow up to £50,000 (or £50,000 each for a couple to a joint maximum of £100,000) unsecured to place a deposit on a property. This loan is available to those about to purchase their first home, those moving home and even those moving home who are in negative equity on their current property and trying to move. The main terms of this loan are

  • Minimum loan £5,000; max £50,000 (or £100,000 for a couple)
  • Fixed rate of 14.9%
  • Terms of up to 15 years available
  • No Early Repayment Charges
  • Very clean credit record required
  • Applicants must be employed for at last 1 year and self-employed applicants need to show up to date certified accounts
  • Affordability: applicant needs to have min £200 surplus income over expenditure even with the projected loan payments. Bank statements may also be required.
  • Available in England,Scotland and Wales only
  • Available on all types of residential properties including Council, RTB or Shared Ownership
  • The loan must be completed in conjunction with a regulated mortgage

This new product, while quite niche in that it is aimed at those buying or moving house, is nevertheless going to benefit many of those who would otherwise have struggled to raise the full finance for a property. It should also give a boost to the moribund housing market by opening up opportunities to those who want to move that might otherwise have thought they were unable to. It is also a sign of further freeing up of the credit market in that it is now possible again to purchase a house with 100% finance using this loan for the deposit on the house and a standard mortgage. Already lenders such as Santander have said they are happy to accept this loan as the deposit for a house and they will extend a mortgage as well. To find out more about this loan or to discuss your general finance or mortgage options please either call one of our Advisors on 0845 1260350 or complete our Mortgage Enquiry here.

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