The first 100% LTV mortgage was launched today.

The first 100% LTV mortgage was launched today. This means that if the buyer meets the lending policy/criteria, no deposit is required. Because this scheme will be shared on social media, we wanted to provide accurate information from our mortgage advisor Lewis Shaw.

Key Points:

• This is only for first-time buyers.
• Buyers must Evidence they have been paying rent for a minimum of 12 months (equal to or more than the new mortgage payment)
• Standard loan-to-income limits apply.
• Applicants will need an A1 credit history.

Lewis Shaw, our mortgage advisor, elaborates on this:

“To qualify, buyers must be able to evidence they have been paying rent for a minimum of 12 months. The new mortgage payment must be equal to or lower than their last 12-month rental history.

For example - if they have been renting at £800 per month, the new mortgage payment must be £800 or lower to qualify. If they have been renting at £800 per month, the max loan would be £149k

Standard loan-to-income limits apply alongside a rental track record calculator - this means buyers still have to have the income necessary to pass affordability tests - it's not as simple as they've been paying rent at that level and therefore, they can have a mortgage.

This scheme could work quite well in some of our areas as often mortgage payments will be lower than the rent some tenants are paying. The credit scoring will be incredibly tight, so applicants will need an A1 credit history.”

This scheme is far from the ultimate solution, but it will provide an excellent opportunity for some renters to purchase their first home.