First-time buyers are being offered the chance to pay a modest £5,000 deposit and potentially borrow up to 99% of a property's value. The mortgage from Yorkshire Building Society is valid on places up to £500,000 and comes without a fee - but there are a few key exceptions. Money blog - latest updates It's not available for flats or new-build properties and would-be borrowers must pass strict affordability and credit scoring checks.
With a small deposit, there is also a greater risk of falling into negative equity - owing more than your home is worth - if a property falls in value. Skipton Building Society is another lender that has launched a product for first-time buyers. Its track record mortgage looks at previous rent payments to assess what a person may be able to borrow - and a deposit is not required. Again though, there are restrictions that mean new-build flats are excluded.