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Over 55 Mortgages
Although many types of mortgages are available for those over 55, age plays a factor in lenders' decisions. Whilst there is not an upper limit on age that a lender will allow, some lenders put in an upper limit on age restrictions. The main points when deciding if a lender will allow borrowing is:
The upper limit of the lender, length of the mortgage term, interest rates, and affordability of mortgage repayments.
New Build
There can be many reasons for purchasing a new build property. However, arranging a new build mortgage can be more complicated than a regular mortgage. Lenders are typically stricter on the loan to value (LTV) ratio on new build flats compared to new build homes. Meaning you may have to increase your deposit if you are looking at a new build flat. Mortgage contracts terms may also be an issue with any delays in construction possibly causing your current mortgage offer to expire before completion. Speak to an advisor for extra information on new build properties.
Serviced Accommodation
This is a form of buy-to-let, however, unlike a typical buy-to-let serviced accommodation allows for short-term lets of up to 3 months at a time. These mortgages make you run your serviced accommodation property as though it were an Airbnb/hotel which have capabilities of producing much larger amounts of revenue in comparison to typical shorthold tenancy's. With the breakout of COVID-19, it was shown that these are less stable forms of buy-to-let in terms of occupancy if something were to occur which would stop the serviced accommodation being repaid. Due to this banks have become wary of lending for this specified reason. Speak to a specialist to discuss your options of increasing your property portfolio.
Green Mortgages
Green mortgages are normal mortgages but with a discount! Discounts are typically found through reduced interest rates and cashback deals. Green mortgages are typically available to those who have an overall property energy performance rating of A or B. Lenders can also give you reduced interest rates on additional funding toward 'Green repairs' such as replacing single glazing windows to make your property more energy efficient.
Right-to-Buy
A government scheme aimed at helping those who have been council tenants to buy the council house they currently reside in and usually at a great discount! Discounts are typically 35%-50% or more off of the market value. These discounts are accessed if you have been living in a council house or flat for more than 3 years. You may also use this discount as a deposit for the property itself however not all lenders will accept this. For more information to see if Right-to-buy is accessible for you, speak to an Actuate mortgage professional.
Let-to-Buy
At some point, you may want to upsize your house by purchasing a new one. Unfortunately, sometimes a buyer can't come along in time for you to snap up the new property. This is where Let-to-Buy comes in. This turns your current property into a rental whilst using finance from your existing home to fund the purchase of your new home. For more details on Let-to-Buy and how it may help you get out of a tough spot contact an Actuate mortgage professional.
Shared Equity
Many may not be able to fund a full house purchase, and in a market like this, no wonder. With shared equity, you can own a part of the property with the help of the Scottish government and live inside the property whilst benefitting from capital appreciation of the property. Such funds are known as Help to buy scheme, LIFT scheme and First Time Home schemes. To find out if shared equity will be of use for you, speak to an Actuate mortgage professional.
Shared Ownership
Not to be mistaken with shared equity, shared ownership has similar properties to its counterpart, however, there will be a rental charge due to the owner of the remaining share of the property. One year after purchase you are able to buy the remaining equity if the funds are available. Obtaining these mortgages typically come with different lending criteria. Actuate mortgage has professionals on hand to help guide you through your shared ownership application.