The Prime Minister recently claimed that it was possible to purchase a home with just £10,000 as deposit on an average property. This is largely due to the Help to Buy schemes which have been introduced by the Conservatives. However, is it possible to buy a home with a low deposit?
A report by Telegraph Money features tests that they have carried out to see if it really is possible to buy a home with just £10,000. According to David Cameron, a family earning the national living wage would be able to afford a starter home, with the help of one of the schemes introduced by the government. However, many first time buyers are struggling to afford their first home and have found that they need more than £10,000 as a deposit.
Although the deposit is one problem faced by property buyers, there are also other factors to take into account. Salary is a problem faced by many, as most lenders will offer a maximum of four times the salary, which for someone earning the national living wage won’t be sufficient to buy a property unless they live in a region where property prices are exceptionally low. Credit is also another factor, as affordability checks are more stringent.
If a person is earning minimum wage, they may also struggle to save a deposit and may have problems repaying a mortgage. A mortgage adviser will have experience of the difficulties faced by many first time buyers, and thanks to taking CeMAP training will be able to offer some advice.
