In a return to the days before the economic downturn, some major lenders are bringing back up to 95% loan-to-value mortgages.
Building Society Nationwide and bank Santander have just announced new 95% mortgages, meaning that buyers will now only need a 5% deposit before purchasing a home.
This will mean that many first time buyers in particular will be able to achieve their dream of getting onto the property ladder without the help of the government backed help to buy scheme, part of which is due to end in 2016.
Borrowers with the Nationwide will have to pay 3.99% interest and a £999 fee for a two year fixed rate deal. Nationwide’s Head of Mortgages, Henry Jordan said: “Nationwide’s move significantly increases the society’s lending in the first time buyer market and widens consumer choice.”
Santander has declared that it is: “ready to extend our commitment to lending up to 95% loan-to-value without the need for government support,” offering fresh hope to those concerned with the winding down of the help to buy scheme.
If you’re a first time buyer or you’re planning to move up the property ladder, Walton&Allen’s are on hand to answer your questions and help you find the right mortgage for you. Contact us today to find out more.