First time buyers deposits increased year on year

first-time-buyerFirst time buyers who can afford deposits of only 5% or 10% of their property’s value are now making savings of £790 on average when compared with 12 months ago. However, the high LTV lending market is set to shrink over the coming months as a result of the withdrawal of Help-To-Buy2. According to the Genworth Moneyfacts LTV Tracker, the cost of servicing a mortgage for buyers with small deposits has fallen sharply over the past 12 months.

Simon Crone says, “Competitive rates available for those with smaller deposits mean they are able to make huge savings compared to what they would have paid for the same loan in previous years, but the other group typically facing far higher costs than those with the parental support to gather together a larger deposit. The current situation was unlikely to prevail. These are just a temporary restoration of high LTV lending, and when Help-To-Buy2 comes to an end, lending to those with small deposits will decline further. But would-be borrowers should act fast to get a competitive rate because of the risk of rising costs and a fall in the supply of high loan to value mortgages later this year.”

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