Mortgage Products To Support Young Buyers
It is fair to say many people have been evaluating their finances in relating to how we deal with COVID-19. Some people have experienced challenges or changes in their job or personal circumstances. For many people, the thought of moving home or buying a house is far from their minds.
However, there will be many people who are in a position to step on the property ladder. With affordable interest rates and an increase in mortgage products from lenders being placed on the market, there will be prospective buyers who have a genuine opportunity to find a solution which helps them buy a home.
Young buyers benefit from structured financial support
Of course, even when there are opportunities to arrange a mortgage and buy a home, young buyers benefit from additional assistance. With many lenders looking to introduce or reintroduce suitable options for all buyers, a product aimed at young borrowers is sure to be of interest to many would-be buyers.
The Principality Building Society has reintroduced its Joint Borrower Sole Proprietor mortgage product. The lender states this mortgage product allows buyers to receive help from relatives in arranging a mortgage. While “the Bank of mum and dad” is often said as an insult, anyone who is in a position to receive support from family members should consider this as a suitable option.
The product allows parents, step-parents, guardians or grandparents to include their income in the affordability assessment of the applicant. Up to four applicants can be placed on the mortgage application, and there is no minimum income level required for the application.
Another critical feature of the product is relatives do not need to be listed on the title deeds. Also, there is no need for the relatives to be classed as joint-owners of the property.
Family members benefit from structure in offering support
While this product will not be suitable for everyone, it will be of significant benefit to some buyers. While some households have family members who are willing to support their loved ones, there is often a need to formalise the support. This style of product provides a structure for financial assistance in buying a home, and products like this can help more people step on the property ladder.
Helen Lewis is the National Account Manager at Principality Building Society and she said: “It’s a challenging time for first-time buyers not only with rising house prices but current uncertainty in the housing market due to coronavirus. We’re pleased to respond to this by reintroducing the Joint Borrower Sole Proprietor offering, which will assist young borrowers wishing to get on the property ladder and support our valued brokers. This product offers additional support for new borrowers to overcome affordability issues and ensure they can get on the ladder as soon as possible.”
Applying for a mortgage is the last thing many people are considering, but for some individuals and households, now is the right time. Mortgage lenders are still active, so anyone interested in arranging a mortgage, should prepare themselves for the process, and speak with industry experts.