First time buyers urged to consider shared equityFirst time buyers urged to consider shared equity
Taking out a shared-equity mortgage is a useful option for first time buyers and these products are set to become more popular as the credit crunch continues, it has been claimed.
According to Click 'n' go Mortgages, one of the main advantages of shared-equity mortgages is that borrowers do not need to put down a deposit.
Shared equity mortgages allow buyers to pay for 75 per cent of the cost of the home, with equity loans from the mortgage lender and the government accounting for the rest.
A recent Pink Home Loans survey found that 40 per cent of intermediaries were considering shared-equity mortgages as a solution for first time buyers.
Hayley Martin, team leader at Click 'n' go Mortgages, said: "Looking at the property ladder, deposits are the big thing holding people back.
"While property prices are falling, they are still high and a ten per cent deposit is still an awful lot of money."
A survey of young people conducted at the Glastonbury Festival by the Chartered Institute of Housing found that less than one per cent of respondents owned their house through a shared-equity scheme.