95% mortgages still in demand

95% mortgages still in demand
Many young people struggle financially to make that initial step on to the property ladder, with the need for a large deposit being cited as one of the biggest barriers

According to Yorkshire Building Society, demand for mortgages up to 95% loan to value remains strong with lending increasing by 50% year-on-year in this area.

The Yorkshire Building Society Group increased its 95% LTV lending by more than 50% in 2016 compared to 2015, and has pledged to remain in this market as part of its ongoing support of first-time buyers.

The Help-to-Buy scheme, which ended on 31 December 2016, enabled mortgage lenders to purchase a guarantee on mortgages from the Government for those borrowing between 80% and 95% LTV. Now there are up to 30 lenders offering higher LTV mortgages, the Government decided the scheme was no longer required.

The Yorkshire Building Society Group did not use this scheme as part of its 95% LTV offering.

Without Government backing the Group has advanced more than £650m in 95% LTV lending over the three years of the scheme.  

In addition, the Group has supported over 6,000 first-time buyers to get on the property ladder during 2016 alone.


James Farrow, Senior Mortgage Product Manager at the Yorkshire Building Society Group, said: “Some may see the withdrawal of the Help-to-Buy mortgage guarantee scheme as a blow to first-time buyers, however there are still plenty of options available to those with smaller deposits.

Many young people struggle financially to make that initial step on to the property ladder, with the need for a large deposit being cited as one of the biggest barriers. We are committed to helping first-time buyers get their foot on the property ladder, and the availability of competitive 95% LTV mortgages plays a significant role in achieving this.

Our figures show that there is still a huge demand for 5% deposit home loans, so we will continue to lend at this level and play our part in ensuring there is still plenty of choice for first-time-buyers and borrowers with small deposits.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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