Good news for first-time buyers as lenders allow smaller deposits
Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.
Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*
It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.
Are you looking to try again with your first property purchase?
Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring.
Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be ‘gifted’ by friends or family members.
Are 95% mortgages likely to come back?
It is likely to be some time before we begin to see the full range of 95% mortgages re-appear back on to the market.
To learn more about your prospects as a first-time buyer, please visit our website.
*Moneyfacts
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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