First-time-buyers can now borrow up to 99%! Yorkshire Building Society offer new initiative to help struggling prospective first-time-buyers.

Yorkshire Building Society has introduced a new mortgage with a £5,000 deposit that allows prospective homeowners to borrow up to 99% of the house value. With a £5,000 down payment, first-time buyers in England, Scotland, and Wales will be able to buy a house worth up to £500,000 thanks to the building society’s new fee-free offer. The lender’s intermediary-only subsidiary, Accord Mortgages, offers the new mortgage to brokers as well as straight to consumers.
The offer is limited to first-time purchasers and allows customers to obtain a five-year fixed-rate mortgage at 5.99% with a minimum deposit of £5,000. At the conclusion of the mortgage term, the borrower’s age cannot exceed 70. The group stated that loans are subject to stringent affordability and credit score assessments, and that the mortgage is not accessible for newly constructed homes or apartments.
It follows the January news that the government was mulling a drastic, Treasury-backed plan to assist financially strapped first-time homebuyers in getting onto the property ladder. The chancellor, Jeremy Hunt, and prime minister, Rishi Sunak, were reportedly considering a daring 1% deposit plan targeted at “generation rent.”
The director of mortgages at Yorkshire Building Society, Ben Merritt, said that, according to a recent study, first-time buyers might be able to get mortgage-ready faster if they had £5,000 in savings. He also mentioned how encouraging a “level playing field for those who don’t have financial support from their families would be to fall back on.”
Prior studies reveal that around 2 out of 5 (38%) first-time purchasers rely on financial assistance from friends and family in order to increase their chances of purchasing a home, with this new initiative aimed at helping those other three in five would-be first-time-buyers.
Adam McHenry (of Cadman Homes) says that “This is great news for first time property buyers in Rugby and Lutterworth where price increases in a steady market have priced some out of their dream home. Although the Lutterworth and Rugby markets afford a wide range of houses and flats, there is still fierce competition and this product (more information here) will really help struggling generation renters. Contact us for a free, no pressure chat with an independant mortgage advisor today”!