Yorkshire Building Society to boost low deposit lending
Demand for mortgages up to 95% loan to value (LTV) remains strong, according to Yorkshire Building Society.
The lender has pledged to continue lending at this level to borrowers with modest deposits in 2017.
The mutual said it increased its 95% LTV lending by more than 50% in 2016 compared to 2015, despite not taking part in the Help-to-Buy Mortgage Guarantee Scheme, which has now ended.
Without Government backing the Group has lent more than £650m in 95% LTV lending over the three years of the scheme.
James Farrow, senior mortgage product manager at the Yorkshire Building Society Group, said: “Some may see the withdrawal of the Help-to-Buy mortgage guarantee scheme as a blow to first-time buyers, however there are still plenty of options available to those with smaller deposits.
“Many young people struggle financially to make that initial step on to the property ladder, with the need for a large deposit being cited as one of the biggest barriers.
“Our figures show that there is still a huge demand for 5% deposit home loans, so we will continue to lend at this level and play our part in ensuring there is still plenty of choice for first-time-buyers and borrowers with small deposits.”