The 95% mortgage is back
No need to worry though that this will have a significant impact on the current rental market as you need to have a “squeaky clean credit record” to get through.
After years struggling to save big deposits, first-time buyers are hopeful of getting on to the property ladder as lenders line up to offer 95% mortgages.
Five years ago there were more than 800 different 95% mortgagesavailable to first-time buyers. When the financial crisis struck, they disappeared from lenders’ shelves almost overnight. But the first few weeks of 2012 are seeing a surprise turnaround – the number of loans on offer has tripled and interest rates have fallen. Will “generation rent“, until now forced into renting because they can’t stump up the huge deposits demanded by lenders, finally be able to put a foot on theproperty ladder?
Read the full story at The Guardian