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Do 95 percent mortgages for first time buyers still exist?

It may seem like forever, but it is only three years ago now when the financial industry was still enjoying what it thought to be boom times, handing out loans and mortgages willy nilly to almost anyone who asked, safe in the assumed knowledge that, in the very worst case scenario, house prices were going to continue rising making a mortgage a fairly low risk loan for them to hand out.

History shows us that they were wrong, but that isn't any good to any first time buyers looking for a mortgage today, is it? Following the heady days of 100 percent and 110 percent mortgages, it has been something of a culture shock to see very few banks offering anything more than 75 percent mortgages of late.

Fortunately, following the publication of recent figures by a leading financial institution, it would appear that things are starting to look up again.

The rules may have changed somewhat, but 95 percent mortgages for first time buyers are very real again. Rather than offering the money up front with very little requirement of surety, banks now request at the very least a 5 percent deposit, plus an additional 20 percent of the cost of the house which they will then take legal control of.

This 20 percent does not need to come from the home buyer, but instead can come from their family and friends as a temporary loan. Should the new homeowner fail to satisfy the terms of their mortgage agreement, that 20 percent can then be used to pay any outstanding bills or fees.

It may not be an ideal solution for many, but it is a solution, and it shows that things are slowly beginning to move in the right direction.

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