It’s been another interesting week in the mortgage market following a few key developments in the wake of last week’s budget.
- Firstly, the Government has announced a brand new scheme whereby FTBs (first time buyers) can apply for an interest free loan for up to 20% of the value of the property. This is provided they can put forward an additional 5% of the property value.
This move is in response to an increasingly harrowing cry from the FTB market: that in the current conditions, it is extremely difficult for any FTB to get a mortgage, due to their lack of credit history and their low deposit levels.
- Secondly, we are still seeing positive things happening at 90% loan to value. There are strong rumours circulating that Northern Rock will release rates in the next week or so at a higher loan-to-value rate. And as always Halifax is continually revising its product lines and offering the most competitive 90% rates on the market.
So everything is looking good for first time buyers this week, with a couple of well-timed shots in the arm.
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