Banks to help out ‘First-Time Buyers’ with Low-deposit mortgages this week.
Many of the British Highstreet banks, such as HSBC is bringing back 10% deposit mortgages this week after pulling out of the market because of the overwhelming demand. They will start by offering two and five-year fixed rates for purchases and Remortgages with up to 35-year terms, with the rates being announced on Tuesday 12th January 2021, and customers may be able to borrow up to £400,000.
Many lenders withdrew their low-deposit mortgage deals last year, with the uncertainty over house prices and difficulties in accessing properties to make any physical valuations. Speaking on behalf is Stephen Kerrigan, a Mortgage Advisor from Doncaster:
The new and third national lockdown will undoubtedly present challenges, however, the experience of overcoming numerous difficulties during the original first lockdown back in March 2020, for example making more use of automated valuations, will be invaluable.
Towards the end of 2020, there were some lenders starting to reach out to ‘First-Time Buyers’ again with the announcement of other banks re-introducing mortgages at up to 90% LTV |Loan-to-Value}.
These types of mortgages build on significant support for brokers and mortgage advisors, and in 2020 it brought them support throughout a very difficult year. For home purchases, First-Time buyers and those who want a Remortgage will get all up to a maximum of 35 years.
As we all wait patiently for that return to normality, although for many it will feel like we may return for a long while yet, a lot of us a returning to the higher LTV space, hopefully that is a little of a welcome normality that we’re all used to.