1St Time Buyers Mortgage?

[yelenots]

Instead of renting we have suggested to our daughter that she buys a property. Does anyone know what deposit the banks/building societies ask for these days from 1st time buyers?
Thanks

[jd_1984]

All I can tell you is we were 1st time buyers. The property was sold to us for £137,800. Most mortgage lenders we sat down with wanted 15% but "Britannia" allowed to us to proceed with a 10% deposit of £13,780. I dont know of any that are lower, perhaps others will? We were a bit bamboozled by the whole process to be honest. We got a fixed mortgage at a rate of 3.7% which we were told was excellent

[rockyracoon]

A small number may accept a 5% deposit but they'll probably attract a higher interest rate, the less the loan to value the better deal you might get.

[yelenots]

Thank you :-)

[ubasses]

Has she looked at the help to buy scheme. Must be a new build though.

http://www.rightmove.co.uk/help-to-buy.html

[yelenots]

Thanks ubasses.....I've had a look but she is only looking to buy a flat at the moment!

[ubasses]

I do not think it makes any difference if it is a flat or not, as long as it is in a new development.

[Peter Pedant]

Yeah good idea.According to the sunday papers today - wh I have disposed of - you have to fight to get a 0% mortgage and the rate is higher

5% deposit, then the mortgage rate will be less than 0% dep but sill high
.
and the industry norm now seems to be 10%.

If you are gonna give her the deposit but dont like the boyfriend you may wish to memorialise your contribution - but there are tax implications