Mortgage News Daily – The first-time buyer mortgage drought is over. But how much will a 95% deal cost? | Money
The worst mortgage drought on record for first-time buyers is set to come to an end with the launch of a glut of cheap 95 per cent loans.
The chancellor Rishi Sunak has pledged to support banks so that they can offer more of these high loan-to-value (LTV) deals after the number available plunged to five. A year ago there were 405 offers to choose from for those with a 5 per cent deposit.
A sales boom and rate cuts are now expected.
An almost identical scheme to Sunak’s new Help to Buy mortgage guarantee in 2013 boosted the number of purchases by those with a deposit of less than 10 per cent from 61 a day to 289 a day by the time that