Nationwide for Intermediaries is lowering the deposit required to purchase a new build house on Thursday, 26th June, as it ramps up support for housebuilders and the government’s housing ambitions.
- Nationwide to offer 5% deposit on new build house mortgages
- Nationwide offering up to 6 times’ income with a 5% deposit via Helping Hand scheme
- The deposit for new build flats to be lowered to 15% of the purchase price
- Mortgage offers on new builds will be extended to nine months
Many first-time buyers will also be able to use Nationwide’s Helping Hand scheme to make their new build house purchases. Nationwide is the largest mortgage provider to allow lending of up to six times income with a 5% deposit.
According to Nationwide, mortgage new build sales in 2024 were around a third lower than in the last full year of the government’s Help to Buy scheme in 2022. Deposit requirements and affordability challenges have played a major part in this and Nationwide’s latest changes will support the new build sector by tackling them.
New build flats
Nationwide’s support extends to the entire new build sector because, at the same time, Nationwide will also be increasing the maximum loan-to-value available for applications involving new build flats to 85% loan-to-value.
New build offer periods
Nationwide will be increasing its offer period for new build properties from six months to nine months. Although the vast majority of new build purchases complete within a six-month period, this change will give customers and brokers greater certainty and flexibility during the construction process. The longer offer period reduces the risk of needing to reapply for the mortgage in the event the property takes longer to complete.
England’s population is projected to grow by more than 6% over the next decade, with significant regional and demographic disparities that may reshape demand for housing and mortgage lending, according to the latest figures from the Office for National Statistics.
Barclays, Halifax and TSB latest lenders to lower rates and they now start from 3.88%
Barclays for Intermediaries has announced it is lowering a selection of its fixes and it will bring back two-year fixed rates from 3.88%.
The new rates will undercut Nationwide with cheaper property purchase two-year fixes. Nationwide has a 3.90% two-year fix with a £1,499 fee, for mortgages between £300,000 and £5 million.
Swap rates are still edging down again so after they went up a few weeks ago we may well see more rate cuts from the lenders pretty soon.
Halifax is lowering some fixed rates for property purchases by 0.07% and remortgage rates by up to 0.18%. TSB is lowering rates by up to 0.15%.
Contact Trinity’s brokers. At Trinity Financial, we help all types of borrowers, from first-time and next-time buyers to business owners and international clients seeking £1 million+ mortgages.
We are keen to work with more Winkworth branches and buyers purchasing through Winkworth. Refer your clients by calling 020 7267 9399 or emailing w[email protected]
