Nationwide Building society is set to relaunch their 90% LTV mortgage range for first-time buyers from Monday, July 20th, with zero set limit on the number of home loans available but there are some conditions.
Firstly, the property in question must be a house at least two years old and within the maximum mortgage term for 25 years and all applicants will be subject to an enhanced credit scoring to ensure the loan is affordable.
The return to 90% LTV lending will essentially help those looking to get on the property ladder, as the fee has been axed for a temporary period.
This news has come shortly after the Government announced a stamp duty holiday last week, which was confirmed to last until March 31, 2021.
The Society says that after last week's stamp duty announcement, combined with an increased active housing market following the Government's lifting of the lockdown restrictions, provided an opportunity to return to a higher LTV lending.
The 90% LTV mortgage for first-time buyers will be available via brokers as well as directly through Nationwide.
Nationwide Building Society hopes that the support will help those looking to buy their first home.
First-time buyers provide vital breathing life into the housing market and the economy but one of the biggest barriers to homeownership is the struggle of saving for a deposit.
Henry Jordan: director of mortgages at Nationwide, said: “As a building society, owned by our members, we are extremely well placed to look at ways of helping people into a home of their own. While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home. We welcome the government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”
Industry experts predict the offer of a lower deposit mortgage to first-time buyers is critical to help the housing market recover quickly. The stamp duty holiday benefit is limited for first-time buyers who are already exempt from it and that Nationwide’s 90% loan-to-value is likely to help more people looking to get on the property ladder.
Since the reopening of the housing market, there has been a record demand for property which has been boosted further by the recent stamp duty holiday announcements, all of which will help further increase activity levels of the next few months.