New mortgage launched for first time buyers
Although other lenders have used the Funding for Lending Scheme (FLS) to support househunters with bigger deposits or equity in their home, the Co-operative Bank is using the scheme to boost first-time buyer lending. It has also teamed up with Camden Council to launch a shared ownership scheme to help first-time buyers combat high house prices in the area.
The product launch follows recent findings from the Which? which revealed that 54% of people under 30 are concerned about their ability to get on the property ladder and that the average arrangement fee is now over £1,400. Interestingly, the National Association of Estate Agents’ Housing Market Report released today shows that the percentage of sales made to first time buyers increased in September, with agents recording 23 per cent of market share in compared with 18 per cent in August.
Which? executive director Richard Lloyd said: “We have been calling on lenders to use the Funding for Lending Scheme to help first-time buyers and mortgage prisoners so today’s news that The Co-operative Bank is to pass on this cheap finance to those struggling to get on the housing ladder is welcome. We want to see more banks follow their lead and pass on lower borrowing costs to all borrowers, not just those with bigger deposits or equity in their homes.”
James Hillon, Head of Mortgages at The Co-operative Bank said: “We welcome the FLS as a route to boosting the housing market and the wider economy, but believe this goal will only be achieved by increasing the availability of mortgages to first-time buyers rather than just focusing on remortgage customers. By offering a market leading rate fee free to those with a 10% deposit, we hope to remove some of the barriers to getting on the property ladder and offer first-time buyers a helping hand.”mortgage
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