New Mortgage Deal Empowers First-Time Home Buyers
Yorkshire Building Society has introduced an innovative mortgage offer that revolutionizes the home buying experience for first-time buyers in the UK. The new deal allows individuals in England, Scotland, and Wales to secure a property valued at up to £500,000 with a deposit as low as £5,000.
This groundbreaking initiative opens doors for aspiring homeowners, enabling them to potentially borrow up to 99% of the property value. For those eyeing a property at £200,000, a £5,000 deposit translates to 2.5% of the purchase price, with the remaining 97.5% covered through a mortgage.
Accessible Mortgage Options
The new mortgage scheme is accessible directly to customers and through brokers via Accord Mortgages, Yorkshire Building Society’s intermediary-only arm. Ben Merritt, the director of mortgages at Yorkshire Building Society, emphasized the significance of this initiative.
‘The society’s research indicates that £5,000 could significantly expedite the process for first-time buyers to become mortgage-ready. It aims to level the playing field for individuals without financial backing from their families,’ stated Mr. Merritt.
Key Features and Eligibility
Under this scheme, borrowers with a minimum deposit of £5,000 can secure a five-year fixed-rate mortgage at 5.99%. The maximum borrower age at the end of the mortgage term is 70. However, the mortgage does not extend to new-build properties or flats, and stringent credit scoring and affordability assessments apply.
Insights from Industry Experts
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, expressed optimism about the new offering from Yorkshire Building Society.
‘This new deal will undoubtedly resonate with aspiring buyers struggling to bridge the deposit gap to enter the property market,’ commented Ms. Springall.
She further highlighted the challenges faced by potential homeowners due to the rising cost of living, making it arduous to save substantially for a deposit, especially amid high rental expenses.
Financial Advice and Criteria
Ms. Springall emphasized the importance of seeking independent financial advice and meticulously reviewing eligibility criteria before committing to a mortgage deal.
For more information on first-time buyer mortgages, you can refer to the First Time Buyer Mortgage Guide.
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For details on Yorkshire Building Society, visit their official website.
By Amanda Jones
