FIRST TIME BUYERS
July 3, 2007
This just came in from the Yorkshire Building Society
Lenders must be feeling the pinch!!
YBS launches new 115% LTV mortgage
The Yorkshire Building Society (YBS) have announced the introduction of a new no-deposit mortgage.
The new offer would allow a maximum of a full 15 per cent above the property value to be mortgaged.
Ian Bullock, sales and marketing director of YBS, said that the current interest rate environment had made it “increasingly difficult for young people to get on the housing ladder”.
He also claimed that the new 115 per cent loan-to-value deal would allow first-time buyers to cover extra costs such as legal fees and stamp duty:
Mr Bullock acknowledged, however, that such mortgages generally prove a higher risk for lenders.
He added: “Whilst there is undoubted demand for this type of lending we feel that we have to demonstrate to customers that we are acting responsibly in ensuring that they do not over commit.”
The new mortgage is also aimed at those homebuyers who do not qualify for the Government Homebuy scheme, which was introduced last year to provide financial help to keyworkers and other target groups to get on the property ladder.
The government is expected to unveil plans for thousands of new council homes after 10 years of Labour opposition to such housing.
Adam Sampson, chief executive of the housing charity, said more social housing was needed as fast as possible.
But Defend Council Housing blamed government policy of “dis-investing” in council homes for a housing shortage.
The private sector just hasn’t ever delivered the decent, affordable, secure homes that people need
Alan Walter
Defend Council Housing
Speaking at a Labour Policy Forum on Saturday, Gordon Brown said he had seen young children suffering because of sub-standard accommodation and young couples unable to buy their first home.
He said local authorities and housing associations would have a larger role and more money would be put into rented accommodation.
Mr Sampson said: “Whether or not it has to be council is neither here nor there. The key thing is that the government bring on as quickly as possible as much socially rented homes as we can create.
‘Council ghettos’
“But it’s also important that those homes are built in the right place and we don’t go back to the council ghettos that we had in the past.”
He added that the major shortage in social housing was a consequence of selling off a third of the six million council homes under the right-to-buy scheme.
Last week, Gordon Brown announced that three million new homes would be built by 2020 – up 250,000 from the previous plan.