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Boost for first-time buyers as lenders offer 10% deposit mortgages 

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.

m.dilworth@dailymail.co.uk

Read more at DailyMail.co.uk


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