Nationwide’s recent announcement of a return to lower deposit limits has been heralded as great news for first time buyers in much of the media.
The move comes after June’s withdrawal of their direct higher loan-to-value offering after house price uncertainty and fears of negative equity.
Speaking in the press they noted that;
“For a short while, we were – like most lenders – limiting the amount we’d lend on our new mortgages to 85% of a property’s value.
“But we recognise that it is particularly tough for first-time buyers to raise a 15% deposit.
“So, we’re delighted to announce that, if you’re a first time buyer, we’re now able to lend you up to 90% to help you buy the house of your dreams.”
So their swift return to the market at 90% has brought some much-needed and welcome choice for clients, albeit in a very limited part of the mortgage market.
Whilst it is always great to see more choice, it is important to remember that lending criteria for all banks and building societies offering mortgages with a 10% deposit are restrictive.
Also, do remember that interest rates are subject to change at little notice.
Therefore, it really is more important than it has been for a number of years that anyone seeking a new mortgage or home is well prepared when beginning their property search by being “mortgage ready” from the outset.
You can read about that in our series of blogs here on our website.
They will only take a few moments to read but are full of top tips to getting you mortgage ready and in the best position possible, whatever happens in the housing and mortgage markets.