Increased Deals For First-Time Buyers

The Credit Conditions Survey released last week has revealed some startling news for first time buyers who in the past have struggled to find the finance to invest in property.

In their report from the Bank of England, they divulged that many leading lenders are now planning to launch numerous smaller deposit sized loans within the next 3 months, as well as reduce the deposit sizes of existing deals…

However, whilst there is still 3 months to wait before these deals happen, many banks are already revealing new 90% LTV deals to the market place. The Progressive Building Society in particular has recently released an extremely competitive 2 year fixed year deal for a 90% LTV with an interest rate of just 5.79%!

And hopefully such deals will continue appearing…

Already according to property portal Moneyfacts.co.uk, the number of 90% LTVs has literally doubled in the last 10 months to 150 deals.

Yet despite this evident increase in the number of first time buyer deals available, property advisors are still concerned that not enough deals cater for property owners who need to borrow an even higher proportion of the properties value.

Similarly, property advisors are warning lenders to not make the underwriting criteria of these deals too harsh; otherwise first time buyers may find it impossible to access these LTVs if they haven’t got a squeaky clean credit history.

Original Article

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Peter Franklin, Property Mentor Delegate

I used to believe stocks and shares were the only way forward, yet after 15 years of property investing, neither of these can compare with the sheer velocity or impact that property investment can have on your bank account. Only with property can you truly experience the power of being in control of immediate cash flow AND capital appreciation. Stocks and shares simply cannot compete. Read more