More lenders set to launch 95% mortgages
Banks and building societies have confirmed they will be reviewing their product offerings in line with the 95 per cent loan to value (LTV) mortgage guarantee scheme announced in yesterday’s Budget.
Lloyds, NatWest, Santander, Barclays, HSBC and Virgin Money were named by chancellor Rishi Sunak as the lenders who were already prepared to lend through the scheme from April.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, said the scheme was a “very positive move” and said the mutual was supportive of any measures that encouraged the housing market.
Purvey added: “We’re actively looking to see how we can participate and we’ll look closely at the details over the coming days.”
TSB said it was keeping the Treasury updated on its plans on how it would support borrowers within the 90-95 per cent LTV segment. Yorkshire Building Society said it would look at the details of the scheme once they had been published.
A spokesperson for Nationwide said: “We are carefully considering the details of the scheme. We anticipate continuing to expand our support over this year and will factor the government’s scheme into our discussions.”
Platform is also investigating the possibility of launching products using the guarantee.
Carolyne Gregory, director of retail lending at The Co-operative Bank, said: “We are looking forward to understanding this new scheme in more detail in the coming days and we are interested in how we can be involved as we continue to look for more opportunities to help and support first time buyers take that crucial step on to the property ladder during 2021.”
Skipton, Dudley and Darlington Building Societies also said they would be reviewing their ranges to serve those needing a 95 per cent LTV mortgage.
The mortgage guarantee will be a government-backed fixed rate loan available to all owner occupier buyers. It will be eligible for properties up to a value of £600,000 and include second-hand residences.
Applications for the scheme will be open from next month until December 2022.