View more on these topics

Time for lenders to give FTBs a chance


The UK’s biggest mortgage lenders – Santander, Barclays, Lloyds Banking Group, Nationwide Building Society and the Royal Bank of Scotland – are still not offering borrowers with a 10% deposit access to competitive rates.

Cheltenham & Gloucester has launched a three-year fixed rate for house purchase at 6.99% with a £1,094 fee and RBS has a poor first-time buyer special at 6.89% fixed for five years with no fee.

Santander offers first-time buyers the option of a 5.99% three-year fixed deal with a £495 fee and Nationwide has a two-year fixed rate 90% LTV deal at 5.98% but the maximum LTV is 85%.

We’ve been waiting for low deposit mortgages for years and some lenders do have good deals.

The Post Office is offering competitive rates at 90% LTV which are available on an interest-only basis. And Britannia has a decent 90% LTV rate for house purchase at 4.99% but brokers can’t access it.

Some will argue that if you can’t afford a mortgage you should not buy property but the problem is that many lenders are not offering affordable rates while they clamp down on affordability requirements.

There are just four 95% LTV mortgages in the market, the pick of which is Clydesdale’s 6.99% three-year fix with a £599 fee.

Brokers would like to see more help for first-time buyers. Where are the low cost mortgages that keep the housing market going?



Use technology to rebuild the market

It was good to see Halifax launch its new intermediary online system recently, as lenders investing capital in new systems are few and far between at the moment. In tough economic times the natural tendency is to conserve as much money as possible, and along with the marketing spend the technology budget is usually one […]


News and expert analysis straight to your inbox

Sign up