Some exciting news this week... 10% deposits are making a comeback.
This is exciting as since Covid-19 hit the UK back in March lower deposit mortgages have been very few and far between. the reason for this is that lenders were worried about house prices falling and had little confidence in the housing market. This could cause borrowers to have negative equity which means they would owe more than the house is worth. This is not a good situation for a lender or for the borrower. For this reason most lenders required a minimum 15% deposit - some even higher!
But this week, three major lenders came back into the 10% deposit mortgage market to add to the couple of lenders who already had products available. This is great news as the more available these mortgages are and the more lenders available, the more likely it is that a broker will be able to find you a mortgage and get you onto the property ladder with a good deal.
It also shows that confidence is starting to grow again the property market and property prices.
Now we are not completely out of the woods yet with regards to the property market but this is a huge step in the right direction and a big sign things are starting to normalise again.
If this may affect you or you would like to know more then speak to you local mortgage broker.