Throughout the coronavirus outbreak, low-deposit mortgage deals have plummeted causing jeopardy for First-Time Buyers in the South Yorkshire area.
Mortgage Lenders are asking first-time buyers to save up at least a 20% deposit to get on the property ladder, according to Stephen Kerrigan, Sheffield Mortgage Advisor. Even a 15% deposit is disappearing since we entered Lockdown 6 months ago.
Data from Mortgages Remortgages at the start of the month have showed that borrowers are able to borrow 10% of the value of a home had the option to choose from around 60 deals. However, six months earlier, borrowers could have chosen from 779 deals.
Lenders are being stricter about who they granted mortgages to, with some having already said they won’t consider applications of those on furlough without a return to work date.
Stephen Kerrigan, mortgage advisor from Sheffield told us:
It’s hugely frustrating for these potential buyers, especially when product availability has plummeted since March when there were hundreds of deals to choose from to now having very few deals.
Lenders are worried that if they open themselves up at this level for longer, they will be inundated with applications and will be unable to cope with the pressure of First-Time Buyers looking to get onto the property ladder.