First-Time mortgages with a 10% deposit makes a comeback. However, not if you want to buy a flat.
Good news, First-Time mortgages with a 10% deposit makes a comeback, which means you can start to get a mortgage from major lenders again. However, not if you want to buy a flat.
Stephen Kerrigan, Mortgage Advisor of Mortgages Remortgages near Sheffield commented: “HSBC is still offering home deposits mortgages at 90% on a property and the accord came back recently. However, Coventry also came back at this level but only for two working days.”
The problem is that some lenders are struggling with so many applications coming in since the Lockdown restrictions eased last month, while some other Buyers are to have their own skin in the game so they know how to ride out the financial storm.”
“Many lenders have been launching products in the high loan-to-value sectors, particularly at 90%.” Although, it’s not just finding a deal that could prove to be a stumbling block, as Nationwide won’t let a buyer use the 90% mortgages to purchase flats.
New home Builds are out of the question, which means buyers won’t be able to make most of the governments “buy-to-help” loan scheme to help them secure their first home. Kerrigan pointed out that some lenders are also refusing to lend whose entire deposit has been gifted to them such as, parents, grandparents, etc.
The number of deals available for a 90 per cent mortgage has drastically fallen since the start of the coronavirus crisis. Just 70 such mortgages were available at the start of July compared to 779 in March, according to Mortgages Remortgages – Sheffield Fee Free Mortgage Advisor.
Some are very cautious about the finances due to COVID-19, while at the same time losing short-term cash from payment freezes and business loans.
The best deal for you depends on the type of mortgage you’re after for your shared ownership of your home. The term of the deal, and whether it comes with any fees. Some deals include a two-year, three-year, and five-year fix, which follows the bank of England’s base rate.
Some rates vary from 2.49% with a £999 fee for a two-year fix to 2.99% with a no fee for a three or five-year deal. Of course, as with any mortgage you should always consider both the rate and fee together, and how much it’ll cost over the term of the loan on the property.