Nationwide introduces new 95 per cent mortgage for the first time buyer
If you've been putting off entering the housing market for the last couple of years because of the serious lack of low deposit mortgages available to new buyers, then we're delighted to be able to tell you that Nationwide have introduced a brand new 95 per cent mortgage for the first time buyer which should mean you're now able to get n the property ladder at long last.
Following the collapse of the global lending markets, things looked bleak for those of us without upwards of a 25 per cent deposit put aside in our savings specifically for a mortgage on a new home, but, as of early May, Nationwide Building Society have announced that their brand new Save to Buy account will allow first time buyers to apply for mortgages of up to 95 per cent loan to value.
Anyone interested will be able to open a Save to Buy savings account with the company, which pays out two and a half per cent in gross interest annually for all balances of up to £20,000. Having saved a minimum of £50 each month for six months, you'll then be entitled to apply for a 95 per cent LTV (Loan to Value) mortgage.
This makes Nationwide the latest in a small, but ever growing group of financial institutions taking the first tentative steps to opening up 5 per cent deposit mortgages to the masses once again following years of economic turmoil which wreaked havoc with the lending market.
For more information on the Save to Buy scheme, check out the Nationwide website at www.nationwide.co.uk today.