New scheme to beat homebuyers’ deposit gap
Anyone looking to take their first step on the housing ladder on Teesside may now only need a five per cent cash deposit, thanks to a new scheme which enables them to borrow up to 15 per cent of the cost of the property up front.
Raising a large enough deposit is often the biggest barrier to buying a place of your own as many banks currently ask buyers to put down a deposit of 20 per cent.
But help is now at hand for anyone with a good income but a low deposit who is looking to buy a new home from Barratt North East – they can apply for an unsecured personal loan of up to £50,000 from Hitachi Capital.
Hitachi Capital has teamed up with Aldermore Bank, a specialist lender, who will offer a market leading 80 per cent mortgage. Under the scheme, a typical buyer would only need to raise a deposit of five per cent of the total price of the property. Hitachi Capital can then arrange a fixed rate unsecured loan of up to 15 per cent of the purchase price to make up the balance of the required deposit.
Fenton Hewitt, Sales Director at Barratt North East, said: “We know there is enormous demand for home ownership amongst local people who have good incomes but are currently stuck in rented accommodation.
“This new offer is tailored to suit their needs. It is an inexpensive way to borrow the deposit required to buy a home. I would urge anyone interested to contact us to find out how this ground-breaking new scheme can help them to realise the dream of home ownership.”
Gerald Grimes, Divisional Managing Director at Hitachi Capital, said: “Would-be homebuyers have become disheartened with the current housing market because of the large deposits demanded by a lot of lenders.
“Last year we teamed up with Barratt to offer parents the opportunity to help their children onto the ladder, this year we are opening up this innovative new product to the buyers directly.”
Charles Haresnape, Managing Director of Mortgages at Aldermore Bank, said: “There are thousands of perfectly creditworthy borrowers who are unable to get a foot on the first rung of the housing ladder because of the difficulties of raising a deposit. This new scheme addresses that issue head-on.”
To be eligible to apply for the loans, applicants must be UK residents, aged over 21 and have both a good credit rating and sufficient income to service both the deposit loan and mortgage repayments. The offer is available to all buyers, not just those buying for the first time.
Barratt North East is building a selection of 2, 3 and 4-bedroom homes at Hardwick Green, Stockton, at prices from £100,000 and Mandale Park, Thornaby, at prices from £85,000.
Showhomes at both developments are open daily from 10.00am to 5.00pm. For more, visit barratthomes.co.uk.
