First-time buyers to get better deal on homes?

Posted: 05 Jul 2010 12:05:56 GMT

First-time buyers may find it easier to get onto the property market after Yorkshire Building Society announced its decision to lend 90 per cent of property value.

The two-year fixed-rate option at 5.99 per cent will have a number of incentives for those looking to attain a home, including £500 cash back and no product fee.

Tom Girling, mortgage product manager at the organisation, noted the move was an attempt to balance the needs of the sector and consumers.

"We are now lending to people with smaller deposits and waiving many of the fees. This can save around £2,500 which can make such a difference," he added.

Individuals who chose to use the deal will also get 12 months free building and contents insurance.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, recently said supply is starting to outstrip demand, which may see a reduction in house prices.


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