More Mortgage Options For First-Time Buyers


The stamp duty holiday has encouraged many people to make a move in the housing market, but not everyone has been able to capitalise on this measure.

It is fair to say the stamp duty holiday isn’t a fantastic option for first-time buyers. Many experts will state there are other ways for first-time buyers to find support in the housing market. However, there is no denying the stamp duty holiday seems better placed to help people looking to buy more expensive homes or property in more expensive areas.

Mortgage lenders have been under pressure of late

It would be fair to say many mortgage lenders have been under considerable pressure of late. The demand for mortgage holiday solutions transformed the industry, almost overnight. A lot of lenders found themselves stretched and unable to manage their resources in the way they would have liked.

You should also consider many mortgage lenders were working with a reduced staff. Therefore, many lenders had to compromise on what they offer, and low deposit options were reduced.

However, in recent weeks, this has changed, and buyers who can afford a 10% deposit now have a greater range of mortgage options to consider.

The companies who have provided options for people looking to borrow up to 90% of the property value are:

  • Metro Bank
  • Nationwide

To emphasise how quickly things are changing in the mortgage market, HSBC were providing 90% mortgages, but have now stopped offering this product, at least for now. This reinforces the importance of working with a professional who is following the market closely, as they will ensure you receive the most up to date information.

First-time buyers need more help when looking for a mortgage

According to Defaqto, there was a total of 28 products available for customers looking for a higher LTV mortgage. Katie Brain is the Banking Expert at Defaqto, and she said; “It can be really hard to save for a deposit for a home and high LTV mortgages are often the only way a first-time buyer can get on the ladder. The Stamp Duty Holiday may help first-time buyers but without the finance, home-ownership will be out of reach for most. It is encouraging to see lenders returning to the market and new products coming out for those with small deposits. We are seeing many come onto the market for only a few days and so borrowers will need to act quickly to secure these deals.

It is great to see mortgage options returning to the marketplace, but it is important people take a cautious approach to these products. The mortgage sector, and the economy in general, is seeing many changes. In recent months, there have been examples of mortgage products placed on the market only to be removed just as quickly. Therefore, mortgage applicants should seek guidance before committing to a solution.

Katie Brain also said; “Buying a home is a huge investment and not without risk, anyone who is looking to take out a mortgage should speak to a professional adviser before committing.” Calling on the services of a trusted professional can minimise many of the problems associated with quickly-changing markets.

While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.

Request A Callback

Request A Callback

Please fill out the form below if you would like to request a callback.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.