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Best mortgages for under 35s first time homeowners

A lot of young couples and families are currently unable to afford to own their own homes due to a lack of appropriate mortgages and the need to find a deposit. With the stamp duty ‘holiday’ over in March an increased tax is a cost that first time home owners need to bear. Parent assistance is now increasingly necessary and many first time buyers are opting for part buy, part rent schemes through housing associations in place of mortgages. But things could change.

Nationwide – Save to Buy Scheme

Nationwide are one of many lenders trying to tap into the first time buyer’s market. Their scheme aims to assist first time buyers who struggle to save the deposit necessary to get onto the ladder. It offers a competitive rate of interest whilst the borrower save a deposit. But it’s main selling point is the possibility of qualifying for a mortgage with a 5 percent deposit.

Lloyds – TSB Lend a Hand

Lloyds TSB are another lender offering 5 percent mortgages. Their 'Lend a Hand' mortgages are available to all Lloyds TSB current account holders who pay in more than £1,000 a month. Unfortunately to benefit from this scheme you need the backing of someone willing to deposit 20 percent of the property's value into a Lloyds TSB savings account. This is the only way that the lender can offer mortgage rates in line with those available to borrowers with 25 percent deposits.

Final Word

Recent studies of mortgage data shows that lending to buy-to-let landlords is increasing at a record rate whilst other home owners are paying their debts and sitting tight in their current properties. This situation isn’t helping first time homeowners to get onto the property ladder. Picking the best mortgages for under 35s isn’t easy because it depends on individual circumstances, but at least lenders are starting to cater for this problem, so there’s renewed optimism in the marketplace.

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