First-time Buyer Mortgages Might Become More Affordable

It was announced recently that UK banks and property developers and holding negotiations. Evidently, they are discussing the availability of mortgage finance and 95% loan-to-value mortgages for first-time buyers in particular.

In the opinion of property developers, improved mortgage availability will boost demand from buyers and especially first-time buyers who find it hard to meet strict lenders' criteria.

According to an insider, one of the possible cooperation options is the set up of a fund with significant injection of equity by housebuilders. This fund is expected to be used by lenders to underwrite the mortgage loans. In their turn, banks promise to reduce credit risk scoring criteria for UK first-time buyers.

The following banks and building societies are currently taking part in the negotiations: Lloyds Banking Group, Banco Santander, Taylor Wimpey, Barratt Developments and Persimmon.

More information about the talks between the banks and property developers can be obtained from The Times’ article published earlier this month on the official website of the gazette.

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