How would you like a mortgage with no repayment for the first 3 months?

Purchasing your first home is an exciting milestone, but it often comes with a big financial burden. From moving expenses to furnishing your new space, the costs can quickly add up. Recognizing this, one lender has introduced a unique solution: by delaying the first 3 monthly mortgage payments to ease the initial financial strain for first-time buyers.

What Is the 'Delayed Start Mortgage'?

The Delayed Start Mortgage allows first-time buyers to defer their mortgage repayments for the first three months after completing their property purchase. This means you can settle into your new home without the immediate pressure of monthly mortgage payments.

Key Features:

Deferred Repayments: No mortgage repayments are due for the first three months.
Interest Accrual: Interest begins to accrue from day one and is added to the overall mortgage balance monthly.
High Loan-to-Value (LTV): Borrow up to 95% of the property's value, requiring only a 5% deposit.
Fixed Rate Options: Choose between two- or five-year fixed-rate periods for repayment stability.
Eligibility: At least one applicant must be a first-time buyer, meaning they have never owned a residential property in the UK or abroad.

Why choose a Delayed Start Mortgage?

Financial Flexibility: The initial three-month repayment holiday provides breathing room during the costly transition into homeownership. This period can be especially beneficial for managing overlapping rent and mortgage payments, moving expenses, and home setup costs.

Tailored for First-Time Buyers: Lender’s research indicates that many first-time buyers feel financially stretched in the first few months after moving into their new home. The Delayed Start Mortgage aims to alleviate this burden, allowing you to focus on settling in rather than immediate financial pressures.

Potential for Additional Support: This mortgage can be paired with lenders Income Booster scheme, offering further financial assistance. However, it cannot be combined with government schemes such as Shared Ownership, First Homes (England), or Help to Buy.

Important Considerations

While the Delayed Start Mortgage offers significant initial relief, it is essential to understand the long-term implications:

Increased Overall Cost: Since interest accrues during the deferred period and is added to the mortgage balance, the total amount repayable over the term will be higher.
Not Suitable for All: If you're financially prepared to begin repayments immediately, other mortgage products may be more cost-effective in the long run.

How to apply

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.