Nationwide is to restart mortgage lending to first-time buyers with a 10% deposit, saying that stamp duty tax break introduced by Chancellor Rishi Sunak had helped restore confidence in the property sector. The building society restricted its mortgages in June, citing fears that falling house prices could leave high-mortgage borrowers in negative equity, with only customers holding a 15% deposit having been able to apply for loans. It has now said it will resume lending to first-time buyers with a 10% deposit as of July 20. Henry Jordan, head of mortgages at Nationwide, said: “We understand one of the biggest barriers to homeownership is raising a deposit. While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home.” Following Nationwide’s announcement, Coventry Building Society said it would offer 90% mortgages on a trial basis, while Platform, part of the Co-operative Bank, will now also offer 90% loans.
SOURCE: NACFB The Daily Telegraph