Yorkshire Building Society Launches New Mortgage Deal
Yorkshire Building Society has introduced a new mortgage deal that requires only a £5,000 deposit for first-time homebuyers. This offering aims to make homeownership more accessible to individuals who may not have substantial financial backing from their families. Under this deal, first-time buyers in England, Scotland, and Wales have the opportunity to borrow up to 99% of a property’s value with a fee-free mortgage. For instance, a first-time buyer purchasing a property at £200,000 would only need to provide a 2.5% upfront payment, with the remaining 97.5% covered through a mortgage. This mortgage option is accessible both directly to customers and through brokers via Accord Mortgages.
Encouraging Financial Responsibility
Ben Merrit, the director of mortgages at Yorkshire Building Society, emphasized that this new deal aims to create a ’level playing field’ for individuals who do not have the luxury of financial support from their families. Merrit highlighted the importance of financial responsibility when taking out a mortgage, stating, ‘We have a duty to encourage financial responsibility in anyone taking out a mortgage.’
Overpaying to Reduce Long-Term Liability
Financial experts recommend overpaying on the mortgage to reduce long-term liability. Rachel Springall, a finance expert at Moneyfactscompare.co.uk, advised borrowers to consider overpaying whenever possible. By doing so, borrowers can build more equity and work towards reaching a lower loan-to-value bracket, potentially unlocking access to more affordable refinancing deals in the future.
Assistance for First-Time Buyers
Research conducted by Yorkshire Building Society indicates that a significant portion of first-time buyers rely on financial assistance from their loved ones to enter the property market. This support plays a crucial role in enabling individuals to take their first steps onto the housing ladder.
Conclusion
The new mortgage deal from Yorkshire Building Society presents a promising opportunity for first-time buyers to secure a home with a minimal deposit. By promoting financial responsibility and offering accessible mortgage options, the society aims to support individuals in achieving their homeownership dreams.
