This week one lender has announced a 95% loan to value mortgage deal; the deal allows the vender to gift 5% of the property?s value to the purchaser. This has in essence created the first 100% loan to value mortgage deal seen for some time, in theory this could allow a first time buyers to enter the UK property market with a?no money down deal?.
With some developers and sellers keen to do deals before Christmas we could see first time buyers having 5% of the property value, fee?s and other incentives gifted to them.
The point of real interest here is that the lenders must have a certain degree of confidence that the UK property market has ?hit bottom?, for them to risk lending at this level of gearing.
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