Does saving for a house deposit feel out of reach? Are you fed up with paying extortionate monthly rent and don’t see a way out? Or do you want to use your savings for something else? With a recently available no deposit track record mortgage, you might be able to achieve your homeownership dreams sooner than you think!
Yes, you read that right. It is now possible to secure a mortgage without putting down a deposit first. This is excellent news for medical professionals who are currently renting and are itching to get a foot on the property ladder. You might be wondering what the catch is, but our trusted experts at Doctors Mortgages Online have put together everything you need to know about this exciting mortgage product.
What Is A Track Record Mortgage?
A track record mortgage, or 100% mortgage, can help you buy a property without worrying about having a deposit. Although aimed at first-time buyers, this type of mortgage is available to people who haven’t owned a property in the UK in the last three years.
To be eligible for this, you must have been renting a property for at least the last 12 months because affordability for this type of mortgage is assessed based on how much you currently pay in rent. You need to show lenders that you can afford to run a home.
It has been over a decade since this type of mortgage has been available in the UK, and it offers a fantastic opportunity for you to get a foot on the property ladder and start increasing your assets.
As with any mortgage, applications are treated on a case-by-case basis based on individual circumstances.
However, here are some key points to be aware of:
- You must be 21 or over
- You can’t have owned a property in the UK in the last three years
- You must have been paying rent for at least 12 months in a row and be able to provide proof of this
- You must have proof of paying all household bills within the past 18 months
- Can borrow up to a maximum of £600,000
- Maximum term of 40 years
- Accepts joint applicants of up to four people
- Not eligible for properties in Northern Ireland
Other Mortgages: The £5K Deposit Mortgage
The £5K deposit mortgage is designed specifically for first-time buyers and is another great way to achieve homeownership. If you are a university student or are still going through your training, it is likely that you have lived in shared rental accommodation up until now, so a track record mortgage would not be suitable for you. Affordability is based on your income.
Some key points to consider:
- Minimum £5,000 deposit
- Maximum LTV 99%
- Only for first-time buyers
- Maximum purchase price of £500,000
- Maximum term of 40 years.
- Maximum age at the end of the term is 70
- Houses only, not eligible for flats or new builds
Get In Touch
To find out more about your eligibility for track record or £5K deposit mortgages and to discuss your options, contact our friendly team today. We don’t charge a fee for our mortgage services, and we can help you find the right mortgage product.
