Insurer Genworth Financial claims lenders will be able to help more first time buyers get on the property ladder after the launch of its specialist mortgage insurance product.
Genworth says the product will help to mitigate the considerable risk associated with 100 per cent loan-to-value lending by covering lenders’ risk.
Research commissioned by Genworth has shown that 57 per cent of 21-40 year old property-hunters still believe that a deposit is required to secure a mortgage, resulting in a delay in their property purchase and potentially missing out on the benefits of house price appreciation.
Furthermore, 60 per cent of those hoping to buy in the next four years said that they feared they would find it difficult to raise the money for their deposit.
“Raising a deposit need no longer be a barrier to owning a home,” says Genworth UK & Ireland managing director for mortgage insurance Tammy Richardson. “Mortgage insurance for 100 per cent LTV lending has a key role to play in providing first-time buyers with earlier access to home ownership while also enabling lenders to grow.”