New mortgage to help teachers onto the property ladder

Orbit HomeBuy Agents have welcomed the launch of a new mortgage that will help teachers who have been struggling to get onto the property ladder.

The high levels of deposit required by many lenders has made it difficult for many people to access a mortgage, however, the Teachers Building Society is now offering 100 per cent mortgages for teachers purchasing a new home using HomeBuy Direct. This means that no deposit is required.

Offered by many housing developers, HomeBuy Direct enables eligible purchasers to take advantage of equity loans provided jointly by the developer and the government of up to 30 per cent of the property value. There is no interest to be paid on the loan for the first five years and after this initial period, homebuyers pay a fee on the equity loans of 1.75%, rising annually by the Retail Price Index (RPI) plus one per cent. Those purchasing a home through HomeBuy Direct, still have 100 per cent title to their home and can sell it on the open market without restriction.

Orbit is the largest HomeBuy Agent in England, covering six zones including Norfolk and Suffolk / Bedfordshire and Cambridgeshire / Coventry and Warwickshire / Hereford and Worcestershire / Staffordshire and Shropshire/ Birmingham, Solihull and the Black Country. As the first port of call for people interested in finding an affordable home, the organisation witnesses first hand the difficulties teachers and other homebuyers are facing in the current economic climate.

Manager, Karen Coleman said: “One hundred per cent mortgages are rare at the moment and many people are having to delay their home buying dreams for several years while they save up, or are having to turn to friends and family for help to pay their deposit. We know that people still aspire to buy their own home as we are processing around a thousand applications each month. Many of these applicants are teachers who play a valuable role in our communities and we are delighted that through HomeBuy Direct and the new Teachers Building Society mortgage, we will be able to help even more of our frontline key workers into affordable home-ownership in their local areas.”

Even if you are not a teacher, Orbit HomeBuy Agents may be able to help you find a home you can afford using one of the HomeBuy products, whether you wish to buy or rent a property. If your annual household income is less than £60,000 you could be eligible for assistance.

If you would like to find out more about Orbit HomeBuy Agents or any of the HomeBuy products, visit: orbithomebuyagents.co.uk