View more on these topics

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com