Research shows building societies good for first-time buyers
May 16, 2024 by Heidi
Lenders
The latest industry research has revealed that building societies are the lenders introducing the most innovative ideas to help people get onto the property ladder for the first time.
This is according to data issued by price comparison website Moneyfactscompare. Its research indicates that building societies have introduced a number of schemes that are helping those buying for the first time to overcome the problems of affordability.
Among the products cited in the research as evidence of this are a credit score-boosting joint scheme between Experian and Leeds BS; a £5000 deposit loan that has been introduced by Yorkshire BS and the Track Record mortgage created by Skipton BS.
On top of this, the data also shows that the rates available on mortgages for first-time buyers are often lower at building societies than other lenders. This is especially true when it comes to five- and two-year fixes with loan-to-value (LTV) of 95% and 90%.
Moneyfactscompare pointed out that overall rates are sometimes better with major high street lenders, due to their greater margins. However this is often offset by other costs and issues, meaning those deals do not necessarily prove to be the best for first-time buyers.
Paul Broadhead from the Building Societies Association told Mortgage Introducer that:
“Any borrower looking to get their foot on the property ladder would be wise to seek independent advice to ensure they find the right deal for them.”
Someone who completed CeMAP mortgage advisor training is the best person to offer that sort of advice.
Written by
Heidi
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