Mortgage Talk has welcomed Halifax's first-time buyer mortgage and says its a welcome boost for new homebuyers this Easter and summer.
Andrew Frankish, operations director at Mortgage Talk, adds that the products are exactly what the market needs at the moment.
He says: “Recent statistics show that the average deposit for first-time buyers has quadrupled since 1996, and is rising at a rate of almost 7% a year. Three years ago, the average first-time buyer was 34 years old, a figure that is set to rise to 36 at the end of the decade.”
“In the light of these worrying facts, I'm pleased to see the Halifax take the initiative to help the most beleaguered end on the housing market.
“Price rises over the last three years have made it harder than ever before for first-time buyers to get onto the property ladder. Until recently, lenders had not been doing enough to make it easy for them to afford their first home.”
The Halifax first-time buyer mortgage is a five-year fixed rate deal at 5.89%, up to 97% LTV, with 1% cashback, £199 arrangement fee and a refund of the Halifax valuation report up to £475. There are repayment fees for the term only.
Frankish adds: “Until recently, lenders have been subscribing to the principle that the bigger the deposit, the better the mortgage deal, with the result that first-time buyers are being neglected in the marketplace. This discourages first-time buyers from entering the property market which will cause a negative pressure on house prices.”
“The industry has already seen offers from second-time buyers being chosen in preference to first timers, because of the hefty deposits that they have available, thanks to recent house price rises. Hopefully, this new Halifax mortgage, together with other similar products, will help redress the balance.”