Barratt Homes Welcome 95% Mortgages

Barratt Homes, one of the best-known names in housebuilding in the UK

, has welcomed the recent Government announcement of the introduction of 95% mortgages to help first-time buyers get onto the property ladder more affordably. With many younger people wanting to get out of renting and into homeownership being thwarted by lenders' demands for large deposits and the relatively high interest rates of larger mortgages loan-to-value (LTV) percentages, the new scheme promises to "change the game".

"The key thing about the return of 95% mortgages on new-build homes is that people will no longer need huge deposits of up to 20% of the price of the property," says Gary Patrick, Regional Sales Director at Barratt London. "Even though house prices have fallen since 2007, not everyone has been able to take advantage because of the hefty deposits which lenders have been demanding ever since the credit crunch began."

With many parts of the capital bucking the national trend for falling house prices, those aspiring to new-build homes in London have found it particularly tough to save the requisite funds for a deposit on even a modest first home. Gary goes on: "Now the banks have agreed to start lending again on new-build homes at 95 per cent loan to value, so homebuyers will only need a deposit of five per cent. In practice that means that you could buy a home from Barratt London's GWQ with a deposit of just 11,125."

With full details set for release in the coming weeks, the new mortgage products are thought to provide loans that are as easy to apply for as conventional mortgages and, in addition to needing only a five per cent down-payment, will also carry competitive interest rates so that creditworthy homeowners are not penalised by punitive rates simply because they are unable to save for a large deposit.

Gary Patrick is delighted with the Government's strategy: "Make no mistake - this is a game changing moment for creditworthy buyers who have been understandably frustrated for years about not owning a home of their own. Anyone who doesn't have much equity in their current home but needs to take their next step on the housing ladder also stands to benefit. Now that we have 95 per cent mortgages, I expect lots of local people who have been thinking about a second-hand home will look at what new home builders have to offer."

In addition to Evolution in Edgware, Barratt London has a range of new apartments for sale in London and the South East, from one-bedroom properties at Vickers Green in Crayford, starting at 140,000, to a two-bedroom penthouse at Putney Square in Putney costing 1.05 million.

by: Keith Osborne

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