For those looking to by their first home, there is some hope at last. Nationwide has revealed that they have doubled their lending to first time buyers and figures showing an increase in the number of mortgage deals for those who can only manage a small deposit.
We are finally starting to see some cheaper mortgage rates for those who cannot afford a huge deposit.
Prices also continue to fall with the land registry stating that they fell by 0.3% in October. Halifax have also confirmed that the typical price paid by a first-time buyer is down by 20% and is now £121,063.
If you’re planning to buy your first home you could do a lot worse than talk to Nationwide. The building society has revealed it is responsible for almost one in five of all new mortgages being granted to first time buyers. Many of these buyers have been using their save to buy schemes. This is a regular savings account which helps people save for a deposit and will provide access to a 95% mortgage after the account has been open for 6 months.
Ray Boulger at mortgage broker John Charcol believes more lenders will launch 95% mortgages in 2013, but says: “People with small deposits will still have to have a good credit record.”
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