Help For First Time Buyers

With huge deposits required, rising house prices and extremely selective lending criteria, what help for first time buyers is there? If you’re a first time buyers, there are a few options out there for you which can help get you on the property ladder.

    

Family

If you are fortunate enough to have family who could afford to lend you money towards your property it will mean you won’t have to worry about mortgage fees, interest rates and complicated applications.

Government help to buy initiatives

There is a number of different government schemes aimed to help first time buyers get on the property ladder, you can learn more about them here. It is worth investigating to see which one could help you.

HiP Interactive Property

HiP Interactive Property

We are reinventing how real-estate is bought and sold, and we have some exciting news for first time buyers, including raising money through investors and access to your equity, read on to find out more…

OUR EXPERTISE

So how do these things help with buying a house for first time buyers?

Family are a common way of getting on the property ladder, and the “Bank of Mum and Dad” is well used amongst young adults trying to buy their first home. Staying with them rent-free allows you to save for a deposit, early inheritance or an interest-free loan allows you to get to the process where you can buy a house quicker. Even putting their names on as guarantors can help your chances of getting a mortgage. However, relying on family members is not an option for everyone, so it all depends on your circumstances.

Government-led initiatives are popular amongst those buying their first house. There are a lot of them available – from equity loans to help to buy ISAs and shared ownership. The schemes will offer a high interest savings account, or allows you to buy a share of a house with the local authority in order to get on the property ladder. There are stipulations to these schemes, most of them will have restrictions of what type of house you live in and its value. Some of them only work if you choose to live in a new build in a certain area. So, it’s worth working out what you want from your future house before you commit to a first time buyers’ scheme.

And then there’s HiP. A company who has revolutionised the way property is bought, owned and sold. The traditional rules of lending do not apply with HiP. If you feel in a rut with a small deposit, none of the normal specifications that a traditional lender would require and feel little hope in owning a your own home, HiP can help.

HOW CAN HIP HELP FIRST TIME BUYERS?

HiP works on the basis that owning your own house shouldn’t be a privilege enjoyed by a few. While the government could do more to build good quality, affordable housing, we decided to look at home owning in a slightly different way.

What if you could treat a property in a much more fluid way? If, instead of trying to meet a lender’s strict criteria, you could get help from investors who could put money into the property? And as equity grew on the property, you could use it to do interesting things with it, like convert the attic, or use it to tide you over for a few months with the mortgage if your income was tight?

“HiP could solve the UK housing crisis”

Peter Bill,

Author of Planet Property

"It’s a game changer, and a very exciting one."

Sophie Eastwood,

Global board director of Young Entrepreneurs in Property (YEP) and founder of specialist property PR consultancy, Holistic

HOW DOES HiP WORK?

Apply for mortgage with HiP

We are here to help

HiP is providing a helping hand to anyone looking to get into the property market. We create an affordable financial package to buy a house – and this can include investors to reduce the amount of money you have to present to the lender. This can help you leapfrog over the many obstacles that come with buying your first home.

Apply for mortgage with HiP

Flexibility You need

Our interest-only loan can be paid monthly in cash, or in equity – and there are no early repayment penalties or extended loan fees. You take on the loan for as long or as little as you like.

Apply for mortgage with HiP

Dream Big

But doing things the HiP-way, means that you have far more scope in the type of home you live in. With help from the investors, you can look beyond your original budget and dream big.

Apply for mortgage with HiP

New and better way

This is transforming the way first time home buyers are look at property and changing the rules on how home buying and owning is managed. Which is great news for you, as a first time buyer.

HOW YOU BENEFIT WITH HIP

HiP is the NEW Way
to finance property

HiP Property: Our Aims

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 is regulated by the FCA

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 is based in London

HiP UK is based in London.

HiP's 20+ staff operate from Camden, London. With registered address in Bristol.

HiP is award winning

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”.

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.

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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.

READ MORE

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.

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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.

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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.

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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

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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.

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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.

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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.

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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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6 Bayside Road, Gibraltar, GX11 1AA.
Company # 116550.

HIP INTERACTIVE PROPERTY UK LIMITED is registered in the UK, and adheres to The Standards of Lending Practice.

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