First-time buyers finding it hard to stump up a deposit for their property may find there are more mortgage products on the market for them than they think.
Earlier this month, Mansfield Building Society announced it was to offer 100 per cent mortgages to those buying a property through the South Yorkshire Housing Association. This has the potential to start a trend for lenders, suggested managing director at FirstRungNow Helen Adams.
"I hope this will pave the way for other similar lenders to start doing the same thing and help first-time buyers onto the first rung of the property ladder," she stated.
Although the building society is likely to be strict in who it lends to, its move is a "welcome change in the marketplace", she continued.
Mansfield Building Society is not the only lender making its mark at the moment. A two-year base rate tracker mortgages is now available from Leeds Building Society for as little as 3.20 per cent and do not have a higher lending charge.
Further good news comes from statistics from the Council of Mortgage Lenders, which reported earlier this month that the number of approvals had seen their first year-on-year rise since the start of 2007. In July, there were 56,000 home loans granted, up by 24 per cent when compared to the previous month.
The average loan-to-value mortgage taken out by a first-time buyer in July 2009 was 75 per cent, compared to 86 per cent in May 2008, showing an improved picture for those looking to get on the ladder.
The availability of more competitive mortgages is "very encouraging", Ms Adams advised, with more lenders showing that they want to help out first-time buyers. Taking advantage of a 100 per cent mortgage is "one solution that could help them", she added. |
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