95% mortgages – good news for first time buyers

The Newcastle Building Society has today launched 2 new residential purchase and remortgage deals at 95% Loan To Value (LTV) with a rate less than 6% and standard arrangement fees, adding to the growing list of lenders looking to assist the first time buyer market.

It’s great new for the housing market which relies on the first time buyers to prop up the rest of the market.

The criteria on mortgages requiring just a 5% deposit are very tight, so a proven track record of managing credit will be essential, as well as being on the electorial/voters register and a reasonable, provable and stable income.

It’s unlikely we’ll ever get back to the 100%+ lending pre credit-crunch but that’s not a bad thing in my opinion, a 5% deposit is a much more attainable for first time buyers and much more sustainable – hopefully!