So you are a first time buyer looking for your first home in Llanishen Cardiff, then you have come to the right place.
This article covers all first time buyer mortgage schemes in Llanishen, Cardiff such as first time buyer mortgage guarantee scheme, equity loan scheme or shared equity loan scheme and etc. Besides, we will go in-depth on the criteria and eligibility for the government schemes of both UK government and the Welsh government.
Am I a first time buyer?
First time buyers can be defined as a person who is a non-existing homeowner that hasn’t owned any freehold or leasehold land in the property market and currently purchasing their first home or property.
Assuming that you are here looking for home ownership, you have already taken your first step on the housing ladder.
Property statistics of Llanishen, Cardiff
Llanishen is not a very “first time buyers friendly” location as it is pinned as one of the property areas with high market prices. To get a mortgage deal for a 2/3 bedroom property, a minimum income of £50,000 will be required. A repayment mortgage or an interest-only mortgage offer will depend on the mortgage lender.
However, the good news is that the house prices of smaller properties in Llanishen such as flats and terraces are on a downtrend. With -8% change for terraces and -5% change for flats on a YoY basis.
UK & Wales Scheme for first time buyers
Aside from benefiting existing homeowners, the Uk and Welsh government decided to offer first time buyer schemes to first time buyers. Here are some schemes that are offered :
Help to buy Scheme
For those looking to purchase a new or existing home with a 5% down payment, the government provides an equity loan for an additional 20% of the property’s value.
Another fact worth noting is that it is interest-free for the first five years of your mortgage agreement.
The shared equity home scheme is capped at £250,000.
Key Workers Benefit Scheme
Unique prices and discounts on mortgages for teachers, armed forces, doctors, and other professionals.
Shared Ownership Scheme
A shared ownership scheme is essentially a co-ownership scheme that allows you to purchase a portion of a property with a local council, local authorities, or a housing association.
You obtain a mortgage for the portion of your property that you own and pay rent on the remainder.
For example, you will purchase a home for 75% of its property price and pay a developer or housing association rent on the outstanding mortgage of 25%. If you purchased 75% of the property price, you would require a mortgage with a maximum loan amount of 95% and at least a 5% down payment.
Shared Equity Mortgages
Shared equity mortgages are when a buyer owns a proportion of the property and then, takes out a zero or low-rate equity loan of the purchase value with the developer that can be seen as mortgage payments rather than having to pay rent.
Mortgage Guarantee Scheme
Mortgage guarantee schemes can be defined as a range of 5% deposit mortgages that were reintroduced to the market thanks to the government’s mortgage guarantee scheme.
It is a new scheme that is introduced and also provides exclusive deals for first time buyers.
Can I get a buy to let property as a first time buyer?
Of course! Cardiff and Llanishen have a booming buy-to-let (BTL) market. As a result, many different mortgage lenders provide BTL mortgages.
If you match the requirements of the lender, you can definitely obtain a BTL mortgage. However, they typically come with higher interest rates and a large deposit.
A first time buyer will also be at a disadvantage, but it is not impossible! Just follow the criteria stated closely and you might just get it!
Get your First Time Buyer Special Mortgage Deal
Yes, it’s true. You are getting special treatment as a first time buyer.
These mortgages are intended to provide some assistance with the first mortgage application fees. For mortgages with lesser deposits (10–20%), they typically offer either a little lower rate or less expensive fees.
At last, get your mortgage!
After tons of research, it’s finally time to get a mortgage. In this stage, looking for a reliable mortgage broker is especially important as you are going to purchase your first home!
Independent mortgage brokers such as Eden Hawk Financial Solutions provide comprehensive advice for first time buyers and guide their way through the property ladder.
