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Taylor Wimpey offers FTBs 95% LTV mortgages

Taylor Wimpey is offering first-time buyers 95% LTV mortgages on a number of its developments in the East Midlands, East Anglia and East London.

The Take5 deal is being offered in conjunction with Melton Mowbray Building Society and Saffron Building Society.

The new mortgages will have rates between 5.49 and 5.99% fixed for two years.

Pete Redfern, group chief executive at Taylor Wimpey, says: “We have been working hard to secure this mortgage deal which we believe will make all the difference to those who aspire to own their own home but find it difficult to save for the large deposits needed.

“Discussions are at an advanced stage with other lenders to support this initiative as part of a range of practical and workable solutions to get more first time buyers moving.”

The news comes on the same day that housing minister Grant Shapps is chairing an emergency summit in London with mortgage lenders, house builders and other industry leaders to find a solution to the first-time buyer crisis.

The Council of Mortgage Lenders estimates that the average age of a first-time buyer not receiving financial help from family is 31. This is largely due to the size of deposit now required by lenders which has trebled in the last 10 years.

Michael Coogan, director general of the CML, is attending the summit, he says: “It is good to see ministers taking the initiative to discuss how we can look to improve market conditions for first-time buyers. But no-one will be surprised to learn that there is no simple quick fix for a market that has changed fundamentally since the credit crunch.

“Creative approaches have a role to play in helping to turn market stability into market recovery, and lenders look forward to working constructively both with government and the housebuilding industry as we look to help create the kind of conditions conducive to responsible innovation.”

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  • Ancient Wisdom...is a mortgage broker in N3 18th February 2011 at 10:53 am

    ..zzzz…yet another developer trying at any lengths to lend on an overpriced shoebox with no scope of rise in its prices for 15 years.

    …not to mention the risk to the lender exposing itself to lending way above the 25% lending on a single development – a recipe for disaster.

  • peter stimson 16th February 2011 at 1:50 pm

    lending FTBs 95% LTV is not the answer to the problems of a lack of FTBs in the market – all lending high LTVs and extended income multiples does is continue and exacerbate the real issue which is that prices for FTBs are too high!

    FTB’s aren’t a stand-alone issue it is a part of the overall probem in the UK of not building enough housing (supply/demend) and the debt fuelled noughties that encouraged excess borrowing and drove prices to unrealistic levels.

    The answer? build more houses and let the pain unwind on house prices – another drink at the bar doesn’t help…

  • martin davis 15th February 2011 at 11:24 pm

    Lets inflate the price of the house, then offer customners 95% mortgages, in a falling market, as we carnt sell many homes otherwise.
    two year fixed, 5.99% interest!!!! AWFUL!!!!
    In a nutshell, DESPERATION!!!!!!

  • aaa 15th February 2011 at 5:38 pm

    More needs to be done to help first time buyers especially to those with good credit scores and solid employment.

    Good luck to Taylor Wimpey hope this initiative works.

  • Steve Ferguson 15th February 2011 at 2:00 pm

    How is it that two fairly small lenders are in a position to be able to provide such high LTV mortgages for FTBs when the “big boys” are not even prepared to look at such deals. I suspect that these loans will have a lower default level due to the fact they will be taken by people who really want to be able to buy a house and will therefore do anything to keep up their payments. Come on lenders follow the example and provide some affordable FTB deals.

  • FTBers 15th February 2011 at 1:28 pm

    The last dying breaths of desperation from an industry facing 50% falls in housing screams to FTB’ers.

    ‘PLEASE! Accept out debt!!”

  • peter 15th February 2011 at 1:07 pm

    Is it just me, or shouldn’t a 95% deal be over at least 3 if not 5 years as chances are it’s really going to push the limits of affordability. Most FTB’s take more than 2 years to get used to paying all the bills and the mortgage as well as their income increasing, so I can’t recall ever having recommended a 2 year deal to FTB’s