With the property market still seemingly on the up, Nationwide has taken the step of offering mortgages with a 5% deposit again. An article in the Guardian recently stated that it is in fact the large deposits that are needed to purchase a property that stops first time buyers getting on the property ladder (http://www.theguardian.com/money/2015/sep/14/homes-cheap-own-expensive-buy-house-prices-first-time-buyers). So is this a good move?
Its difficult to predict the market especially as much of Europe and the rest of the world is still struggling with the worldwide recession that was triggered by the collapse of the sub-prime market in the USA, however, this is obviously a risk Nationwide think will pay off. Only time will tell if they are right.
Nationwide is offering mortgages to borrowers with a 5pc deposit for the first time since 2008. The lender has made an additional £1bn available to first-time buyers and home movers with a small deposit.