HERE ARE some of the homes around Bradford that could be yours thanks to the government’s new five percent deposit loan program – but there’s a catch.
The new home loan guarantee program with a five percent deposit will be available to current homeowners as well as first-time homebuyers who want to buy a home up to £ 600,000.
There is a slight problem, however, as the smaller deposit means you’ll have to borrow more, meaning you need to have a higher annual salary to afford a more expensive home.
The initiative will be available to lenders from April and is designed to increase the appetite of mortgage lenders to offer high value loans to creditworthy customers across the UK.
Under this program, the government will offer to take on some of the risk of low deposit rate loans, which means that lenders would be protected against potential losses.
However, with the rough estimate of people who can borrow four and a half times their annual salary, if you want to buy a house in the upper end of the range, you will need a substantial salary.
At the high end of the scale, to buy a £ 550,000 house, like this five bedroom mansion in Tyersal, you would need a deposit of £ 27,500 and borrow £ 522,500, which means that an annual salary of at least £ 116,111 would be required. .
At the bottom of the scale, the cheapest house currently for sale (not at auction) in Bradford is this one bedroom cottage in Queensbury on the market for £ 49,000. With a deposit of £ 2,450 you will need to earn £ 10,344 per year to get a mortgage accepted.
The average price of a house in Bradford is just under £ 138,000, the cost of this property in Lidget Green. To buy this house, with a deposit of £ 6,850, you would need a salary of £ 28,922.
You can view all of the homes currently for sale in Bradford by visiting Rightmove.