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Loans to first-time buyers increase…

August 2nd 2013
By: Melanie Hollidge
Loans to first-time buyers increase…

The Funding for Lending (FLS) scheme seems to be having a real impact on the amount of low deposit mortgage deals available to first-time buyers, they have almost tripled since the start of the scheme, with around 443 mortgage products now being available for home buyers with a 5% or 10% deposit. An increase of 38% since the scheme was first launched.
 
According to new research the rate for someone with a 5% deposit has fallen from 5.82 to 5.13. At the same time the average five-year fixed rate mortgage has dropped to 4.92 for someone with a 10% deposit, from 5.60 last year. According to the CML, Council for Mortgage Lenders latest statistics, the average deposit for first-time buyers has fallen from 20% to 17%.
 
Home buyers struggling to find large deposits required by some lenders will also have a helping hand when the new Help To Buy scheme comes into place next year. The Help to Buy scheme will require a 5% deposit from the home-buyer and the government will make up an extra 20% of their deposit, interest free for the first 5 years, enabling home buyers to access cheaper mortgages. This Help to Buy scheme is not only aimed at first-time buyers, but at anyone wanting to buy a new home, up to the value of £600,000.
 
If you would like to find out more about how to access some of the new schemes available why not pop into your local branch of Goodfellows.