Positive news for low deposit house buyers

Date: 14th March 2018
Author: Peter Hunt

The last 12 months have seen an increase in mortgage products which allow applicants to put down deposits of as little as 5%. In the UK such deals have risen by 20% in the past 12 months and are at their highest level since the 2008 financial crisis. Having recovered from the crisis by only offering mortgages with larger deposits, UK banks are now in a stronger position than in recent years. Therefore we may see more of the lower deposit deals on offer, but expect interest for these deals to be higher at around 4%.

Moneyfacts reports that this increased number of deals should improve competition. With house price growth slowing and more mortgage options available it could be a great time for first time buyers to get on the property ladder. With the BBC recently reporting that it takes the average buyer 9-10 years to save a 20% deposit, this news will be welcome to mortgage applicants.

All in all let’s hope this can lead to an increase in transactions for the conveyancing industry and more job opportunities for talented and experienced conveyancers across the UK.

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