With Accord Mortgages withdrawing their 90% Mortgage range overnight, the ability to get a mainstream Mortgage for either First Time Buyers, or Homemovers, is now virtually impossible.
No lender will ever want to be last one providing a particular product, definitely where the differential is deposit size – and for many in our catchment of the South East, a 10% deposit is not a small amount of money.
Realistically, for the majority of First Time Buyers or Homemovers, a 15% Deposit is the absolute minimum amount needed. There are some very specialist schemes that can still lend up to 100% of the purchase price, but security of a parents home or additional monies will need to be put on deposit with the lender as a form of protection – and for many that just isn’t an option.
A Gifted Deposit from family members may be a means of increasing any deposit – some recent research suggested that ‘Bank of Mum and Dad’ are the 4th or 5th largest lender in the UK, definitely the largest unregulated lender!
But family may be in a position to help, whilst we all want our independence I would always suggest a family meeting to discuss finances, and to see if there is some means of help.
Mortgage Rates at 85% Loan to Value are still very competitive, and the less you need borrow will mean it is that little bit easier to secure a mortgage too.
The market will take time to rebuild around the small deposit mortgages – it is a combination of issues and as we leave lockdown, that will improve – but for now we would ask everyone to budget for at least a 15% Deposit, where we have a pretty full range of lenders and options, or if you would like to discuss the Family Assist Schemes that may support up to 100% of the purchase price, please get in touch.