Boost for first-time-buyers in Wales as new low deposit mortgages announced
Principality launches direct-only 95 per cent loan-to-value mortgage
January 24, 2013
First-time-buyers in Wales can now access finance even if they only have a 5 per cent deposit. Principality Building Society has launched a new mortgage with a loan to value ratio of 95% for people in Wales and border postcodes SY, HR, CH1, CH2, CH3 and CH4. It has a rate of 4.99 per cent, which is fixed for five years, and it comes with no product fee but does have a £99 application fee. The maximum loan size for the product is £250,000.
Principality head of mortgages Christopher Johnson says: “The shortage of mortgage products realistically available to those with a low deposit has been a major stumbling block for first time buyers and we hope that this product provides an opportunity for them to own a high quality, affordable home.” He went on to praise the Bank of England’s Funding for Lending scheme which has lent around £4 billion to banks since last August on the premise that the money is passed on to consumers and businesses.
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