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Building societies lend FTBs a hand

Building societies are explor- ing ways of helping first-time buyers, with several schemes expected to be launched by the end of the year.

A number of building societies are understood to be dev-eloping support schemes for FTBs, which could involve top-up loans or using family sav- ings to bring down the level of deposit needed.

Property investment firm Assetz is also planning to offer a top-up scheme this year, which would provide a second loan through a third party such as a housebuilder to plug the gap between the maximum loan-to-value ratio and the borrower’s deposit.

John Charcol senior technical manager Ray Boulger says: “The problem for first-time buyers tends to be finding the deposit, not affording the monthly payments. Lenders need to find ways of tackling this.

“Over the course of the year, I think we will see a few more of these support schemes. The mortgage market is very incestuous and as soon a lender starts offering something like this, other lenders will start to look if they can provide similar initiatives in a better way and for a cheaper cost.”

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