1st Time home Buyer Loan Options1. time home buyer loan options
Swiss Post introduces new mortgages without deposits on the market
people who can pay a month's rent but don't have a bond. That part of the loan is interest-free, but must be repaid over five years. It could be a transaction for a parent who wants to help their child buy a home but does not want to give up a large part of their saving.
In order to be entitled, the home of the individual or individuals wishing to help the first purchaser must be mortgage-free and they must be a close relation of the first purchaser, usually a parental, step-parental, fraternal, sibling, step-brother or stepsister. Purchasers make two split refunds for the first 5 years, one for each loan, and there is a choice of two five-year fixed-rate mortgages to adjust to.
The buyer should have repaid the 10% assistant loan after 5 years and decreased the 90% loan amount. This means that if the first purchaser cannot keep up with these one-month repayments, the parents will be liable for the payment of that part of the loan. Therefore, the price range of the parents or members of the families must also be evaluated at the time of the request.
It is therefore imperative to seek impartial counsel before determining whether this kind of morgage is suitable for you. There are other types of loans that are available to first-time purchasers without a down payment. The nationwide building society for example provides the "Family Deposit Mortgage", which allows members of the families to lend a part of the own capital in their house and to give it away to the house buyer so that he can bring in his caution.
You must have your home loan with Nationwide in order to be entitled. A parent earns interest on his or her saving during this three-year term, but cannot make any disbursements until they are completed (provided the mortgages have been paid).