95% Mortgages are available for UK First Time Buyers
Can UK First Time Buyers Get 95% Mortgages
In an attempt to kick start the UK housing market, a key player has today announced that it is to launch a first time buyer mortgage guarantee scheme, offering 95% LTV Mortgage deals for first-time buyers.
The deal has been launched initially from two major UK mortgage lenders and talks are ongoing with other lenders who are expected to follow with similar mortgage deals.
The initial offering of new mortgages come with offers of two-year fixed rate mortgages with rates of between 3.49% and 3.99%.
An industry spokesman commented saying that the deals would enable buyers to secure a two-bedroom home with a deposit of £5,750, compared with the UK average of £28,770 currently required to step onto the property ladder.
An insider at The Mortgage Brokers UK Directory commented saying “It is believed that discussions are at an advanced stage with other lenders to support this initiative as part of a range of practical and workable solutions to get more first-time buyers moving”.
The news comes as Housing Minister Grant Shapps chairs an emergency summit in London with mortgage lenders, house builders and other industry leaders to find a solution to the first-time buyer crisis.
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