An easy way onto the property ladder

Shared equity deals are continuing to prove a lifeline to potential homeowners looking for an affordable method of purchasing a new home and it is not just housebuilders like Rippon Homes who are promoting the advantages of these payment deferral schemes, Independent Mortgage Advisors too are encouraging buyers to take consider the easy way onto the property ladder.

Stephen Rennie is an Independent Mortgage Advisor at Hartley Hepworth. He believes shared equity schemes offer a means of beating the credit crunch and making an affordable move into home ownership. He comments “Shared equity is a great way for clients with little or no deposit to get onto the property ladder in a difficult market.

“Since the beginning of the recession, lending has been restricted and many product providers now require larger deposits when purchasing a property. The products available with lower deposits are at extremely high rates meaning that even if clients have a small deposit, the monthly repayments may be over budget. This is causing many clients, especially first time buyers, difficulties in purchasing a new property.”

In a bid to help more first time buyers make their dream of home ownership a reality, Rippon Homes introduced its Easy Way scheme which allows buyers to initially purchase a property for just 75 per cent of the asking price. The remaining 25 per cent is funded by Rippon through an interest free loan which is repayable when the property sells or after 10 years, whichever comes sooner.

Tracey Nicholls, Sales and Marketing Manager for Rippon Homes comments “Easy Way literally does what it says- it’s the easy way of purchasing a new property.

“We were finding increasing numbers of financially sound customers were coming to us wanting to buy a new home, but because they hadn’t saved a large enough deposit they struggled to secure a mortgage. With that in mind we decided to introduce Easy Way as a means of combating this problem.”

Rippon Homes has introduced the Easy Way scheme at its Symphony Gardens development in Thurmaston.

Tracey continues “We have just one plot available to purchase on Easy Way- plot 14, which is a three- bedroom home in the style of a Minuet. Priced at £165,450 it makes a great starter home especially if purchased on this payment deferral scheme.”

Stephen adds “Easy Way at Rippon Homes is giving prospective buyers a helping hand onto the property ladder and this is a great help to clients who are looking at purchasing their first property. The 25% loan provided by Rippon means that the clients don’t have to provide any of their own funds as a deposit and it also means that the clients are eligible for 75% mortgage products with the lenders offering the schemes which gives the clients the choice of more competitive interest rates than if they were applying for a 90% mortgage for example.

“It is also an excellent scheme for young professionals or people who expect their incomes to steadily increase over a number of years. They can purchase a larger property than they would normally be able to at the beginning of their career and it still be affordable. As their incomes increase within the 10 year period they can then increase the mortgage to repay the 25% share to Rippon.”

Situated off Humberstone Lane, Symphony Gardens is an exclusive development of just 24 properties and comprises a selection of three- and four- bedroom homes in a charming cul-de-sac setting.

The development benefits from all the amenities Thurmaston village has to offer including shops, takeaways, schools and leisure facilities. Thurmaston Retail Park is nearby which boasts a range of high streets shops including Next, Asda, Dunelm Mill and Outfit.

Prices at the development start from £165,450.

For more information visit Ripponhomes.co.uk.