It may seem like a good deal at first but it is subject to various conditions and also assumes that you have a close family member willing and able to put a lump sum worth 10% of the purchase price into a savings account, which not every ones does of course, and for them to be willing to have that raided if you miss any payments.
I can understand how this may seem attractive to some first time buyers looking to get onto the property ladder but and I don’t think this is a return to the reckless lending we saw before the financial crash where loans of 125% were available in some areas, but people need to think very carefully before taking on a mortgage of this size and all the implications. Especially given the uncertainty of Brexit and what that could do to the market. In the worst-case scenario if house prices go down, you could run into problems and very well find yourself getting caught in that negative equity trap and taking a financial hit, unable to move and with a mortgage debt higher than the value of your home. As the areas only Relocation Network Agents our advice is to seek advice and proceed with care before committing to anything. If people need clarification or further information our team of qualified mortgage advisors are on hand to assist.