A report just out indicates that high street banks are not so concerned by fears of a property downturn that they are withdrawing 95% mortgages for first time buyers, as has happened in the past. In previous market contractions banks would withdraw rates for buyers with little deposit in case that equity was lost in a downturn in prices and the bank lost out if they had to resell a property where the buyers got into financial difficulty.
It echoes reports suggesting the housing market has reacted more positively to the EU exit than previously thought. Rates for 95% mortgages are currently at lower than pre Brexit prices, with Brokerage London & Country listing the Nottingham Building Society’s 3.29% rate as the best on the market for 95pc loan-to-value mortgages.
For advice on a first time property contact Simmons & Sons