Halifax Launches New 100% Mortgage With No Deposit For First-Time Buyers
Thanks to the rise in house prices, getting on the property ladder is harder than ever before, with first-time buyers facing an uphill battle when it comes to purchasing their first home.
In a bid to help overcome this issue, Halifax has introduced a new scheme whereby you can now get a mortgage with no deposit required - so long as a family member contributes 10 percent of the house price from their own savings.
So yeah, you'll still need to find someone who's willing to pay what is basically the equivalent of the deposit. However, as you pay off the mortgage, they'll get their money back - and the bank will pay 2.5 percent interest on what they contribute as a thank you.
What's more, the buyers can also get a £300 sweetener to help with legal fees.
The conditions state that the house has to be £500,000 or less over a maximum of 30 years. The three-year mortgage is only available for first-time buyers and is set at 2.9 percent.
Let it be known that you won't qualify as a first-time buyer if you move and, more importantly, if you miss payments then Halifax is allowed to take cash from the 10 percent deposit your family member contributed.
More Like ThisMore Like This
So if you can stick to these criteria and are interested in making the most of this deal, the next stage is finding the right person to foot the deposit money.
Anyone can do so as long as they have either a fee-free Halifax Reward account or an Ultimate reward current account - and if they have enough savings in the first place, obvs.
If they tick the boxes, they'll have to set up a Family Boost Fixed Savings Account before the mortgage is sorted and, over the years, they'll slowly receive the 10% back, as well as 2.5% interest.
The idea is that the funds are balanced out as you pay off the mortgage and eventually you'll switch over to a lower loan-to-value mortgage. And so you've got your feet firmly on the first rung of the property ladder, no deposit required.
The set-up is more or less identical to the Barclays Family Springboard initiative, as well as Lloyds, who offer a similar deal for first-time buyers.
Featured Image Credit: Pexels
Chosen for YouChosen for You
Most Read StoriesMost Read