The number and variety of incentives for first time buyers seems to be increasing with the Halifax, Abbey and the Co-operative Bank all advertising different incentives to tempt the first time buyers away from the competition.
The Halifax has been advertising that it will pay the council tax bill for the first six months on applications before the 23rd May in addition to the offer of paying stamp duty for any first time buyer with them. The Co-op is making it easier for first time buyers to borrow more by allowing guarantors for the mortgage repayments and the Abbey has reduced the mortgage rate for those with only a 10 per cent deposit and reducing the fee from £2499 to just £995.
First time buyers have really struggled to find mortgages since the onset of the credit crunch as mortgage lenders demanded higher fees and larger deposits. As a result, the figures from the Council of Mortgage Lenders (CML) in February showed only half last year’s figure of first time buyer mortgage approvals so it is good to see signs of competition once again as mortgage lenders compete for the first time buyer’s applications.