With a few significant exclusions, Yorkshire Building Society’s mortgage is free of charge and available for properties up to £500,000.
New construction and apartments are not eligible, and applicants must fulfill stringent affordability and credit rating requirements.
One of the challenges faced by many first-time buyers is the need to save for a deposit, as most lenders need at least 10% up front.
Research suggested that £5,000 could help young people get on the property ladder, according to Yorkshire Building Society’s mortgage director, Ben Merritt.
Customers are required to make a down payment of at least £5,000. The agreement offers a five-year fixed interest rate of 5.99%.
There are other lenders who provide first-time buyer packages with 5% deposits, in addition to the building society. They frequently have higher interest rates, though.
If the value of a property declines, there is also a higher chance of having a tiny deposit and being in negative equity—that is, owing more than your house is worth.
