Boost for first-time buyers as lenders bring back mortgages for borrowers with a 10% deposit
Lenders are bringing back mortgages for borrowers with a 10 per cent deposit in a boost for first-time buyers.
Nationwide and Metro Bank will offer 90 per cent loan-to-value (LTV) deals after they were axed during lockdown.
The number of low-deposit deals had decreased as lenders cited concerns over a house price crash and fear of homeowners entering negative equity.
Low deposits: Nationwide and Metro Bank will offer 90 per cent loan-to-value mortgage deals after they were axed during lockdown
Nationwide cited the Chancellor’s stamp duty holiday as a factor behind its decision to re-enter the market.
It says there is no limit to the number of loans it will be issuing to first-time buyers, but will only lend on houses that are at least two years old.
Two, three and five-year fixed-rate and two-year tracker products became available on Monday.
Metro Bank has reintroduced 85 per cent and 90 per cent LTV five-year fixed deals at 2.99 per cent and 3.29 per cent respectively.
Both products have a £999 product fee and the maximum property value is £600,000. Customers who are furloughed will not be accepted.