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More Help Needed for First Time Buyers
Some lenders are demanding deposits of 50% on new build properties and effectively freezing first time buyers out of the market.
Despite falling house prices and interest rates being cut this week to 1%, many first time buyers are still struggling to get on the property ladder. Some mortgage lenders are refusing to lend on new build properties full-stop, whilst others are demanding hefty deposits of 50%, putting first time buyer mortgages out of reach for many.
Tony Rice, of Bedford-based specialist mortgage brokers TMP Mortgage Zone, said: "New build flats and houses are typically the properties that first time buyers go for, but many of them are now being driven away. West Bromwich Building Society raised the minimum deposit required on new flats from 40% to 50% whilst Britannia, Scarborough and Skipton Building Societies do not offer mortgages on new build flats at all."
If you're a first time buyer and looking to purchase a new build flat or house, it pays to use a whole of mortgage broker like TMP Mortgage Zone.
"TMP Mortgage Zone can quickly and easily search thousands of mortgages from hundreds of high street and specialist lenders," says Tony, "saving our clients time and frustration. For example, the West Bromwich Building Society classifies a new build flat as any property constructed or converted since 2000."
[ 06-02-2009 ]
