Mortgage Update for the Bolton Housing market


First time buyer 95% Mortgages, how will this affect you buying your house in Bolton?

The Yorkshire Building Society has announced that as of tomorrow, they are re-introducing 95% mortgages, meaning buyers will only need to put down a 5% deposit. When the pandemic hit last year, the majority of lenders pulled 95% mortgages in fear of the market crashing, however they are now introducing 95% mortgages, which are not backed by the government but entirely at their own risk. This really does install confidence within the market! There are a few stipulations though, they're not applicable to New Build Properties or apartments and for First Time Buyers only. 

Yorkshire Building Society’s chief executive, Mike Regnier, said he was confident the lender could shoulder the risk itself, without needing to fall back on government money. But he said it would not have re-introduced its own low deposit mortgage unless it knew other major banks were about to join the 95% market through the government scheme.

 “As the only lender in this market we’d struggle to meet the demand that clearly is out there for customers that have saved for years to get a 5% deposit and will want to take every advantage of the stamp duty land tax holiday, “We’re trying to restrict, to an extent, the amount of demand that we get from it so that we can manage our service levels. We’ve done that very deliberately,” Reigner has said. So naturally you'd expect a delay in the turn around time, due to the amount of applications that are to be expected. 

This is amazing news for first time buyers looking to purchase their new homes. Which within the last week here at Roe & Co Residential Sales, we have noticed the demand for properties by First Time Buyers is at an all time high. 

The government backed scheme for lenders to offer 95% mortgages, will be released shortly. This scheme, will be for clients looking for home loans given to remortgagors and movers as well as first-time buyers, compensates the bank or building society for some of the money lost if a borrower defaults and the property is repossessed. Opening up 5% deposits to a larger audience, however this is up to a purchase value of £600,000 and will be available until 2022.

A number of mainstream lenders have already committed to the scheme, including Lloyds, NatWest, Santander, Barclays and HSBC. 

Selling your home in Bolton, we're here to help!

Buyers have been saving for higher deposits and by introducing the 95% mortgages, this will open up the option for buyers to take advantage sooner than they thought. The demand for housing is at an all time high in Bolton and according to Rightmove, it is the strongest Spring sellers market in over a decade. If you are considering selling your property in Bolton, please get in touch as we have buyers desperately waiting for new properties to come to the market. This last week I have had to let so many buyers down in Bolton (which I hate to do) by advising that properties have gone under offer and no further viewings are taking place, so I am on a mission to find them their new home!

NOTE - The Yorkshire Building Society's 95% deal released tomorrow (17th March 2021), will be offered through mortgage brokers. If you need any advice please contact us on 01204 416 699, where we will happily recommend a local broker that can offer advice and help you with your first home purchase.


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