How to Buy a Home in Birmingham With a 5% Deposit

How to Buy a Home in Birmingham With a 5% Deposit | Mortgage Market Update 02/10/20

95% Mortgage Advice in Birmingham

In March 2020, the coronavirus brought the mortgage market down to its knees and to this day (October 2020) it is still struggling to get back onto its feet. The whole world has been affected in one way or another; in times like these, everyone has to try to stay optimistic, finding ways to spread positivity. Here, we will share some great mortgage news, that yes you can still obtain 95% mortgages.

If you are a First Time Buyer in Birmingham and have already been trying to shop around for 95% mortgages, you have probably realised that there aren’t many available… if any at all. Lenders just haven’t got their confidence back yet and as such, they are sticking around the 90% mark. However, there are still ways to obtain a mortgage with a 5% deposit and most applicants don’t know this. To see how it can be achieved, feel free to watch our YouTube video or continue reading on:

How to Buy a Home With a 5% Deposit | Shared Ownership & Help to Buy Equity Loan UK

Shared Ownership

If you don’t think that the Help to Buy Equity Loan is for you, then the Shared Ownership scheme could be what you’re looking for. The Shared Ownership scheme was introduced back in the 70s to help people who were struggling to afford a mortgage get onto the property ladder.

This scheme lets you purchase a percentage of your mortgage and then pay the rest as rent. The percentage of the property that you hold a share in is usually between 25%-75%. Since you only own part of the property, you share the rest of it with the government. The percentage that you own can be increased at a later date. People usually make this move once they have settled down or perhaps are making a little more money.

You will have to qualify for the Shared Ownership scheme and meet certain requirements:

  • You can’t have a household income of more than £80,000 per year
  • Can only access it you can’t get a mortgage any other way
  • You need a good credit history
  • You can only own this property

You can find out more information on the official government’s website:

Are they suited for you?

If you are struggling to obtain a mortgage and want to get onto the property ladder, one of these schemes could be your ticket to begin your mortgage journey. If you want help in deciding which scheme could be best suited to you, you should approach a Mortgage Broker in Birmingham like us.

Both the Help to Buy Equity Loan and the Shared Ownership schemes are great ways to begin your mortgage journey, especially in unprecedented times like these. Although, before you rush into anything, it’s always wise to weigh up your options and see what will benefit you most.

Speak to an experienced Mortgage Advisor in Birmingham today

To summarise whether or not it is still possible to get a 95% mortgage… yes it is, however, your options are limited.

To speak with a professional Mortgage Advisor in Birmingham and to get our expert opinion, get in touch with Birminghammoneyman. We have been in the mortgage game for over 20 years now and have lots of experience with pointing customers in the right direction. Choosing the right option is much harder when you are doing everything on your own, which is why your Mortgage Broker in Birmingham is here to help 7 days a week. We hope to hear from you soon!

Last edited 28/10/2022 & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
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