New 95% mortgages a ‘game changer’ for local homebuyers

The New Year will see creditworthy homebuyers on Teesside offered the best chance since the start of the credit crunch to buy a new home without a hefty deposit.

Leading housebuilder Barratt North East is hailing the return of 95 per cent mortgages for buyers of new homes – which was announced by David Cameron and Nick Clegg as part of the Government’s national Housing Strategy – as a real boost for the local housing market and local economy.

“The key thing about the return of 95 per cent mortgages on new build homes is that people will no longer need huge deposits of up to 20 per cent of the price of the property,” said Fenton Hewitt, Sales Director at Barratt North East.

“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.

“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 new Barratt home with a deposit of just £4,275.

“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.”

Barratt North East has already set up a special portal for customers to register their interest online at barratthomes.co.uk/Offers/Other-offers/95percentmortgage/.

The 95 per cent mortgages will be on offer from all the leading lenders in the New Year, are expected to be priced at competitive rates and should not involve any more complications than getting a normal mortgage.

The product is specifically designed for new build homes – one more reason, says Barratt, why they are a better deal than their second-hand counterparts.

Fenton added: “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.”

Barratt has homes available at Mandale Park, Thornaby from £85,500; at Meadow Rise, Stockton, from £100,000; and The Elms in Norton priced from £169,995.

For more information, visit barratthomes.co.uk.