Mortgages London | Mortgages in London

We all know that the most favourable mortgage quotes come with the biggest deposits, and that if you can’t stump up at least 40% of the total amount, interest rates will be high. In London the chance of raising a deposit of this size is more difficult than anywhere else in the country due to the high cost of properties in the capital. There are ways you can get a mortgage if you don’t have a large deposit though, and here’s how to get the mortgage quote you are looking for.

Approach an independent broker – Brokers have years of experience and can spot changing trends in the mortgage market. Many borrowers find that they can get the most competitive mortgage quotes from a broker as they are able to approach lenders and find a better bargain than when a borrower enquires directly. An independent mortgage broker can also help secure a lower interest rate when the time comes to remortgage. There are a wide variety of brokers in London that specialise in specific property markets, so if you want to purchase a high value property, you can enlist the services of a broker that specialises in that sector.

Research Government schemes – There are a few products on the market that allow borrowers to access interest free loans in return for giving up a percentage of the equity in the property. These have been designed to help buyers get on the property ladder with a minimal deposit. Depending on which scheme you are eligible for, your mortgage quote could be reduced to just 85% of the value of the property, and you may only need to find a 5% deposit. These schemes make it possible to buy back the equity at any time, or pay it off upon sale of the property.

Consider property share – Many first time buyers decide to purchase a property with other people, resulting in part ownership of a property. This has become increasingly popular in London as young professionals consider flat share to avoid commuting to the city. Getting a favourable mortgage quote for this type of purchase will require advice from specialist mortgage providers, and will slash the amount of money needed for a deposit considerably.

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