A better First Time Buyer Mortgage with HiP
How do you get a first time home buyers loan?
Buying your first home is an exciting but challenging time. Getting the keys to your house can be overwhelming, complicated and a lengthy process.
From saving up a substantial deposit to understanding the range of different mortgages on offer, there’s a lot to take in. And there’s also the important question of whether you tick all the boxes in order to be approved for a mortgage in the first place.
What are the problems facing first time buyers?
It is widely agreed that property is one of the most reliable sources of investment. Most homes increase in value, build in equity and provide capital for the future. So we think it’s a great idea to own a house, if you can. However, now more than ever, first time buyers are finding it difficult to get on the property ladder. It is understandable that the banks needs to feel assured that you’re in a safe enough position to not default on your repayments, after all we’re talking about a loan of hundreds of thousands of pounds, but looking at the bigger picture, first time buyers have a lot stacked against them.
Firstly, in 2008, the UK experienced one of the worst global financial crisis since the 1930s. Which led to years of austerity, rising house prices, tighter mortgage restrictions and a greater disparity between income and expenses. In short, you are part of a generation in the UK that has effectively been priced out of the property market.
Some of the requirements for a standard first time mortgage include:
An immaculate credit history
HOW DOES A FIRST TIME MORTGAGE WORK?
How HiP Finance can help first time home buyers
HiP is a completely radical way of looking at house buying. We think differently about property and finance.
HIP LIKES TO DO THINGS DIFFERENTLY
We believe that it’s up to you to decide how much you want to borrow – not banks or mortgage lenders.
HiP throws out a life line for new property owners
We help first time buyers create an affordable financial package when buying a house, which can also include third party investors to reduce the initial cash outlay. This means that you, as a first time buyer, get onto the property ladder without facing the usual obstacles. And it also means you have more scope in terms of the type of house you live in.
AND THERE’S MORE…
HiP Finance provides an interest-only loan which can be repaid monthly in equity or cash. Unlike a traditional mortgage, there are no penalties for early repayment of loans or extended loan periods. But the real game changer about HiP is that we believe it’s your choice to access the money stored in your property – your equity.
HOW YOU BENEFIT WITH HIP
HiP is the NEW Way
to finance property
Reinvent the way you look at property investment
HiP is hugely beneficial to property owners, changing the way we can use bricks and mortar into something with far more fluidity than ever before. It is a debt and equity exchange, with investors all over the world interested in putting their money into property.
Turn Your Property Into a Bank Account
For you, this means a democratised property market; withdraw money from equity without moving, borrowing or losing ownership, use your equity to cover your monthly mortgage repayments, or trade your equity against your mortgage.
Flexibly in the high-yield property markets without limits
We allow you to do all this, and much more, without the penalties, costs and charges that a traditional lender would impose. Whatever your property investment or finance needs may be, HiP is on hand to help you take your next step.
HiP UK will be regulated by the FCA*
And have an agreed licence for trading in the UK and Europe. *As we go live these permissions are being reviewed.
HiP UK is based in London.
HiP's 20+ staff operate from Camden, London. With registered address in Bristol.
HiP is award winning
We have won an awards and been shortlisted for more. We came second in the worldwide PropTech Innovation Awards and as Bronze in the Digital Impact award 2017 for “Best use of digital by sector”.
What people are saying about HiP
HiP is creating a buzz in the property world, but especially in the first time buyers market.
"Hip has incredible potential. It brings accessibility and transparency to the property market for owners, occupiers, investors and developers, and allows them to take control and leverage the balance of their debt to equity to their own advantage."Paul Danks,
“HiP could solve the UK housing crisis”
"It’s a game changer, and a very exciting one."Sophie Eastwood,
Register your interest
Just fill out the form on this page now, and you’ll be the first to find out about HiP, which we are busy creating. We can’t wait for you to join the property revolution.
Frequently Asked Questions
ARE THERE ANY PROGRAMS TO HELP FIRST TIME HOME BUYERS?
There are several government programs which have been introduced to ease the way for first time buyers to get on the property ladder. These include:
Help to Buy Equity Loan – where the government provides you with 20% of the property value to go alongside your 5%.
Note that this in an interest-free loan for five years, and in year six, a loan fee of 1.75% will kick in, and will increase at the retail prices index plus 1% every year thereafter.
The Help to Buy Equity Loan is only available on new-build properties in England worth up to £600,000. The scheme will remain open until at least 2021, but there is no Help to Buy scheme available in Northern Ireland.
WHAT IS THE BEST MORTGAGE FOR A FIRST TIME BUYER?
The best mortgage for a first time buyer will generally depend on their circumstances, but will inevitably rely on the low bank rates in the UK at the moment – making mortgages relatively cheap. For those struggling with deposits, there are a number of mortgages at 95% and even 100% to help get you on the ladder. HiP can help first time buyers own property without the usual higher rates and hidden catches.
WHAT’S A REALISTIC DOWN PAYMENT PERCENTAGE FOR A FIRST-TIME HOME BUYER?
Most mortgages require a deposit which is equal to 5% – 20% of the property’s value. The higher the deposit, the better the range of mortgage deals you will have access to.
WHAT IS THE BEST ADVICE YOU CAN GIVE TO A FIRST TIME HOME BUYER?
It’s important to bear a few things in mind when you’re looking to buy property as first time buyer. These include:
Put aside as much money as possible – You’ll need money, not just for your deposit, arrangement fees and solicitor costs, but you’ll also require a buffer for repainting and furnishing your home, as well as any other jobs that need doing in order to keep the house well maintained. If possible, it’s a good idea to try and have some money put aside for an emergency fund, for when the boiler breaks, or a roof tile needs replacing etc.
WHAT ARE THE PROBLEMS FACED BY FIRST TIME HOME BUYERS?
First time home buyers can find the whole process of buying a home incredibly difficult. Some of the main problems include:
Being approved for mortgage – you need to have a good credit score and be on a certain income in order to be approved for a decent mortgage.
Saving up for a deposit – saving up to 20% of a property’s value – while still paying rent and the normal overheads, may be very difficult for many people
HOW DO YOU GET A FIRST TIME HOME BUYERS LOAN?
The best place to go for information on the best home buyers loan is an independent mortgage broker. These individuals are not tied to any organisations so will offer you impartial advice that suits your situation.
WHAT ARE PERKS FOR FIRST TIME HOME BUYERS?
From a buying point of view, first time buyers won’t be in a chain or have a property to sell, so therefore an attractive prospect for anyone selling their property. This means there are no ties, and the process will be a lot speedier.
ARE THERE ZERO DOWN PAYMENT OPTIONS FOR FIRST TIME HOME BUYERS?
Yes 100% mortgages do exist, but they’re not common. 100% mortgages allow you to borrow the entire amount without putting down a deposit, or down payment. This is right for someone who has no savings, however they are not widely used as, in the eyes of the lender, there is a high level of risk involved.
WHAT IS A FIRST TIME BUYER HELP TO BUY MORTGAGE?
The Help to Buy scheme is a government initiative which was launched in 2013 and runs to 2020. It was put in place to help anyone struggling to save for a deposit on their first home, or for people having problems moving house due to insubstantial equity.
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Getting on the property ladder is a unique experience with highs, lows and a lot of waiting around. If you’re a first time buyer, get prepared with these tips.