The Times reported this weekend that mortgage lenders are offering fewer 95% mortgages at the moment, due to concerns over an apparent ‘softening’ in UK property values following the referendum. With the Help to Buy scheme also due to come to an end this year, experts suggested that First Time Buyers might want to make the most of the current market, with record low interest rates on offer.
For those struggling to get a deposit together, the Bank of Mum and Dad still has a number of options available, whether it be buying jointly with the children, or acting as guarantor on a loan. For those buying jointly, brokers warned that parents must be aware of the potential stamp duty surcharge, and highlighted a handful of lenders who allow joint mortgages with sole ownership.
The Sunday Telegraph revealed that many lenders have increased the margins on their tracker mortgages for new customers over recent weeks. While some borrowers may be considering talk of another base rate cut, experts have warned that rates could instead head in the other direction. Currently fixed rates represent better value despite the drop in base rate, and homeowners are urged to consider their options now.
What the papers said about First Time Buyers and tracker mortgages