Yorkshire Building Society Offers Helping Hand to First-Time Buyers with 99% Mortgage
Quote from VATcal on 27/03/2024, 19:00First-time buyers across England, Scotland and Wales can now step onto the property ladder with just a £5,000 deposit thanks to a new mortgage product launched by the Yorkshire Building Society (YBS).
This innovative scheme, the first of its kind in recent years, offers a 99% loan-to-value (LTV) mortgage, meaning borrowers can secure a property valued up to £500,000 with a minimal deposit.
"The high cost of homeownership can feel like a real barrier for many people," said Ben Merritt, Director of Mortgages at YBS. "Our research indicates that a £5,000 deposit could significantly reduce the time it takes for potential buyers to save for a mortgage and achieve their dream of owning a home."
The YBS scheme has been met with mixed reactions. While some commentators hail it as a "game-changer" for first-time buyers struggling to save a large deposit, others express concerns about potential financial risks.
"This is a positive step that will undoubtedly help many aspiring homeowners," said Craig Fish, director at Lodestone Mortgages & Protection. "However, it's important to remember that borrowers are taking on a larger loan, so careful financial planning is crucial."
Key points to consider:
- The YBS 99% mortgage is a five-year fixed-rate product with an interest rate of 5.99%.
- It is available exclusively to first-time buyers.
- Borrowers can access free mortgage advice from YBS or use a broker to secure the deal.
Experts recommend that potential applicants carefully consider their long-term financial situation before entering into a 99% mortgage agreement. It's also important to factor in additional costs associated with buying a property, such as solicitor fees and potential mortgage exit fees.
The YBS 99% mortgage scheme has the potential to open the door to homeownership for many first-time buyers. However, seeking professional financial advice and undertaking thorough research are essential steps before taking the plunge.
First-time buyers across England, Scotland and Wales can now step onto the property ladder with just a £5,000 deposit thanks to a new mortgage product launched by the Yorkshire Building Society (YBS).
This innovative scheme, the first of its kind in recent years, offers a 99% loan-to-value (LTV) mortgage, meaning borrowers can secure a property valued up to £500,000 with a minimal deposit.
"The high cost of homeownership can feel like a real barrier for many people," said Ben Merritt, Director of Mortgages at YBS. "Our research indicates that a £5,000 deposit could significantly reduce the time it takes for potential buyers to save for a mortgage and achieve their dream of owning a home."
The YBS scheme has been met with mixed reactions. While some commentators hail it as a "game-changer" for first-time buyers struggling to save a large deposit, others express concerns about potential financial risks.
"This is a positive step that will undoubtedly help many aspiring homeowners," said Craig Fish, director at Lodestone Mortgages & Protection. "However, it's important to remember that borrowers are taking on a larger loan, so careful financial planning is crucial."
Key points to consider:
- The YBS 99% mortgage is a five-year fixed-rate product with an interest rate of 5.99%.
- It is available exclusively to first-time buyers.
- Borrowers can access free mortgage advice from YBS or use a broker to secure the deal.
Experts recommend that potential applicants carefully consider their long-term financial situation before entering into a 99% mortgage agreement. It's also important to factor in additional costs associated with buying a property, such as solicitor fees and potential mortgage exit fees.
The YBS 99% mortgage scheme has the potential to open the door to homeownership for many first-time buyers. However, seeking professional financial advice and undertaking thorough research are essential steps before taking the plunge.
