90 percent mortgages available through Nationwide
High street lender Nationwide has bucked the trend in the mortgage market by offering 90 percent mortgages to borrowers, which has proven great news for the many first time buyers that have struggled to find the level of deposit that many lenders are now asking for.
Before the credit crunch first time buyers were able to get 100 percent and even 125 percent mortgages, but since the onset of the financial crisis lenders have been cutting back on their lending levels.
The lender has now launched a range of mortgages with relatively attractive interest rates for those that only have a deposit of 10 percent, which will prove to be great news for borrowers that do not have the 20 percent or more deposit that many lenders are looking for. First time buyers are amongst the groups that have suffered as a result of these4 demands from lenders, as many do not have a high enough deposit to get a competitive deal on their mortgages.
The deals are being made available to both existing customers that are looking to move home as well as new buyers, and it is hoped that an increasing number of lenders will follow suit and also start offering competitive deals to first time buyers who do not have a huge deposit to put down.
One customer who was looking for a mortgage said: “Since the onset of the global credit crunch it has become far harder for first time buyers to get onto the property ladder because of the huge deposits that lenders have been demanding. I hope that this move by Nationwide is the start of a new era where lenders will start offering affordable mortgages to those that do not have huge deposits to put down, as is the case with most first time buyers.”
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