1% Deposit For First-Time home-Buyers

This article concerns Greycoat specialists´ predictions for UK´s housing market trends. Yesterday, Yorkshire Building Society launched a new mortgage program geared towards 1st time homeowners.

This game-changing deal will be available with a deposit of £5,000 via Accord Mortgages, the lender’s intermediary-only arm. Buyers can purchase a home for up to £500,000. But, Greycoat shares, there are some restrictions.

This loan has an interest rate of 5.99%, Greycoat informs in an interview. It cannot be used to purchase new homes or flats, and the maximum age at the end of the mortgage term is 70. While this program may not be a good fit for everyone, it is nice to have an affordable option for those struggling to save for a larger deposit.

Any lender breaking the mold with innovative or regulatory changes that address the difficulty in saving for a deposit and borrowing enough from a lender should be supported. Greycoat states that John Charcol, mortgage technical manager, said:

“Those that would benefit from such a deal are likely to be high earners and prospective buyers with a good credit score that just simply haven’t been able to save a deposit amid high rents”, Greycoat finally states. Lenders are launching new products and expanding criteria, but they may not always have the same impact as comparable options in the market, which help borrowers overcome affordability and deposit barriers.