31 Jan

Property investment fund for first-time buyers

Property investment fund for first-time buyers

First–time buyers looking to buy houses for sale in the UK could invest in a new home without having to take out a mortgage.

The Mill Group is launching a property investment fund which finances first-time buyer deals with up to 95 per cent loan to value, reports Mortgage Strategy.

Removing the need for a mortgage, the fund allows first-time buyers to purchase five per cent of the property with The Mill Group financing the remaining 95 per cent.

Its Investors in Housing Fund allows first-time buyers to get onto the property ladder without having to apply for a mortgage.

David Toplas, chief executive of Mill Group, told the site: "The deposit requirements for first-time buyers have reached impossible levels.

"Co-investment aims to bring institutional investment into the market by giving consumers the ability to get onto the housing ladder quicker than saving for these levels of deposit."

Monthly mortgage payments are replaced by 'co-investment charges', according to Mortgage Strategy.

According to MyMortgageDirect, the number of mortgage applications rose in 2010.

However strict lending criteria meant that the number of approved mortgages decreased.ADNFCR-1222-ID-800374764-ADNFCR

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