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Help for first-time buyers
By Sarah Modlock
- 'Unassisted' first-time buyers aged under 30, using only their own savings to fund a deposit. They tend to have high incomes, but buy properties with low purchase prices. They have low deposits, high percent advances and borrow a medium-level income multiple.
- 'Assisted' first-time buyers aged under 30, with additional funds for a deposit on top of their own savings. They tend to have low incomes, but buy medium-value properties with high deposits and high income multiples, and low percent advances.
- 'True' first-time buyers aged over 30 (whether assisted or unassisted). They tend to have high incomes, high deposits and buy high-value properties. They borrow on medium-level percent advances and income multiples.
- 'Returners' aged over 30, who have previously been home-owners but are classified for survey purposes as first-time buyers because they have taken a break from home-ownership. They tend to have medium-level income, high deposits and low percent advances. They buy high-value properties on medium income multiples.
- Lloyds TSB Scotland with a rate of 3.99% - this is set at Bank base rate -0.51% until the end of the this year and then switches to Bank base rate 06 +0.50% until the end of 2007 when the redemption penalty period ends. Finally the rate runs at Base rate +0.75% until the end of 2009). It's available for loans from £50,000 up to 95% of the property's value and has a £199 fee, although this is waived on loans over £100,000. The loan amount can be based on income of one client and one parent.
- Mortgage Express with a rate of 5.54% discounted by 0.96% for 3 years. It is available to 100% loan-to-value, free valuation and £375 arrangement fee. Early redemption charges of 5% in three years.
- Leeds Building Society with a rate of 5.99% discounted 0.51% for 3 years. There is a 3% cash back to a maximum of £3,000 and the loan is available to 90%. There is a £299 arrangement fee and free valuation up to £335. Early redemption charges of 5% apply to the first 3 years.
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