Latest news with #HelpingHand
Scottish Sun
4 days ago
- Business
- Scottish Sun
Nationwide is changing first-time buyer mortgage rules and you'll be able to get a loan with just a 5% deposit
Plus, a top property expert shares if the deal is right for you KEY TO IT Nationwide is changing first-time buyer mortgage rules and you'll be able to get a loan with just a 5% deposit Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) NATIONWIDE will make it easier for first-time buyers with 5% deposits to purchase a home from this week. The high street lender is giving customers a chance to secure a mortgage which covers 95% of the purchase price when buying a new build home. Sign up for Scottish Sun newsletter Sign up 1 The building society is launching the scheme as part of its Helping Hand initaive Credit: PA The offer will be available from tomorrow, Thursday June 26 and will also allow customers to borrow six times their annual income through its Helping Hand scheme. Nationwide's product helps aspiring home owners buy a property in expensive areas such as London without borrowing as much. Many lenders ask for buyers to secure a minimum deposit of 10% or more when buying a new build property as the value of the property can fall in the first few years. The bank is also increasing its loan to value (LTV) cap on new build flats. A LTV is the maximum percentage of a property's value that a bank is willing to lend. From tomorrow, Nationwide customers will be able to buy a new build flat with a 15% deposit as opposed to the previous figure of 20%. Nicholas Mendes, mortgage technical manager at John Charcol said Nationwide's offer should "help more buyers who are currently priced out of the market". But the expert warned that there are still some important things buyers need to consider before taking out a high loan-to-value mortgage. He said: "Borrowing with just a five per cent deposit typically comes with higher interest rates than mortgages available to those with a larger deposit. "This means repayments can be noticeably more expensive over time." BLOWS TO FIRST-TIME BUYERS He also said that customers should be wary about borrowing up to six times their income. "While it can certainly help buyers afford the property they want, it does mean committing to a significant level of debt." He added: "This can leave households more financially stretched, particularly if interest rates were to rise further or if their personal circumstances were to change." TOUGH TIMES FOR FIRST TIME BUYERS The shake-up comes amid a challenging period for first time buyers, with wage stagnation and rising property costs acting as a barrier to entry. The end of stamp duty relief available to first time buyers in April and other government schemes such as Help to Buy have also bruised buyers. The mortgage guarantee scheme, which helps people get on the ladder with a 5% mortgage is also due to end on June 30. The scheme provides a guarantee that the Government will cover some of a lender's losses if a borrower can't afford to repay their mortgage and the home is repossessed. It's been available for buyers since April 2021 but it's scheduled to end on June 30, and the Treasury wouldn't confirm if it plans a replacement scheme. It comes as the FCA is looking at ways to loosen lending to help boost the property market. Just this week, the watchdog said it would like to hear views on whether its rules "could better support more interest‑only mortgages'. The body said: "Interest‑only mortgages could be suitable for consumers who may struggle to afford a repayment mortgage and can support sustainable home ownership.' With this type of product, all you pay each month is the interest on the amount you borrowed. The product was hugely popular before the 2008 financial crash, but has become a rare find since.
South Wales Guardian
4 days ago
- Business
- South Wales Guardian
Nationwide makes huge change for thousands of customers
This means that borrowers need just a 5% deposit to qualify for a new build loan, an option also extended to first-time buyers. For those taking their first step on the property ladder, Nationwide said prospective homeowners can also use its 'Helping Hand' initiative to make new build purchases up to the maximum LTV. Helping Hand aims to help first-time buyers by allowing them to borrow a little bit more. In other words, a loan for six times their income, as opposed to the usual 4.5 times income standard amongst lenders. Whether you want to speak to a real person in branch, or do your banking online, there are many ways you can bank with us. If you need support, get in touch: According to Nationwide, mortgage new build sales in 2024 were around a third lower than in the last full year of the government's Help to Buy scheme in 2022. It said deposit requirements and affordability challenges have played a major part in this, and Nationwide's latest changes will support the new build sector by tackling them. Nationwide said it would also be increasing the maximum loan-to-value available for applications involving new build flats to 85%. Whilst the majority of new build purchases complete within six months, this change aims to offer customers and brokers greater certainty and flexibility during the construction process. The longer offer period reduces the risk of needing to reapply for the mortgage in the event the property takes longer to complete. Henry Jordan, Nationwide's director of home, told WhatMORTGAGE: 'A strong housebuilding sector drives growth, and as the UK's biggest building society, we're backing it with a trio of positive changes.' He added: 'These changes have the potential to meet the strong first-time buyer demand for new builds that has gone unmet since the end of Help to Buy, whilst also stimulating the construction sector to build more homes with the confidence that buyers can get a mortgage on them.' Recommended reading: Ceri Pearce, UK sales and marketing director, Taylor Wimpey, said: 'Nationwide's latest mortgage enhancements are a welcome step at a time when desire for home ownership is strong but affordability continues to challenge some customers – especially first-time buyers. 'The increase in the maximum loan-to-value on new build houses to 95% will make it easier for buyers to secure a mortgage with a smaller deposit, and the extension of mortgage offers to nine months will give borrowers greater certainty and flexibility during the construction process. 'These changes reflect a strong commitment to supporting the housing market and responding to the underlying demand for new homes.'
Daily Mail
4 days ago
- Business
- Daily Mail
Nationwide changes mortgage rules to let first-time buyers buy new builds with just a 5% deposit
Nationwide Building Society is offering first-time buyers the chance to get a mortgage covering up to 95 per cent of the purchase price when buying new build houses. The mutual says the mortgage product will be available from Thursday and will also enable buyers to borrow up to six times' their annual income, when they do so via its Helping Hand scheme. Many banks and building societies ask for a minimum deposit of 10 per cent or more when buying a new build, as the properties can fall in value in the first few years. Nationwide's change means a first-time buyer couple earning a combined £80,000 combined might be able to borrow up to £480,000 to put towards a new-build house, as long as they have a 5 per cent deposit and can afford the monthly repayments. Nationwide is also increasing the maximum loan-to-value cap on new build flats. From Thursday first-time buyers will be able to buy a new build flat with a 15 per cent deposit as opposed to 20 per cent previously. Mortgage offers on all new builds will also be extended to nine months, to take account of the fact there can be construction delays. The longer offer period lowers the risk of needing to reapply for a mortgage in the event the property takes longer to complete. Nationwide says its Helping Hand mortgage products have supported more than 57,000 customers since its launch in 2021, with more than 26,000 customers using Helping Hand between April 2024 and March 2025. New build sales have suffered since the end of the former Government's Help to Buy scheme, which was only available on new builds. Mortgaged new build sales in 2024 were around a third lower than in the last full year of the Help to Buy scheme in 2022. Nationwide says tough deposit requirements and affordability challenges have also played a major part in this, but claims its latest change could help 10,000 more first-time buyers onto the ladder. Why does a new build require a bigger deposit? New build houses have historically been seen as riskier properties by lenders. Just like a new car depreciates in value, new builds have sometimes had a tendency to fall in value during the first few years of ownership. 'Historically, new builds have carried more risk for lenders, especially flats, because of the initial over-valuation risk,' says Ravesh Patel, director and senior mortgage consultant at broker Reside Mortgages. 'There was perceived to be a risk that the property could depreciate following completion, often with developers' incentives distorting values in the first instance.' Aaron Strutt of mortgage broker Trinity Financial, added: 'A new build first-time buyer 5 per cent deposit mortgage at six times salary is pretty punchy,' said Strutt. 'Many of the other lenders would not be comfortable offering a product like this. But from a borrower perspective, it gives many people the chance to get on the property ladder and buy a new home.' Nationwide is not alone in offering 95 per cent mortgages on new build houses. Accord, Barclays, Halifax and Skipton are among the other lenders that offer them. The Labour Government's 1.5million homes target could also encourage more lenders to change their rules on new-build mortgages. 'There's a political and regulatory encouragement for lenders to support first-time buyers, particularly with the ongoing housing shortage,' says Patel. 'After volatility in 2022-23, the property market has also stabilised in many areas. Lenders now feel more confident about long-term property values.' Perhaps not surprisingly housebuilders have welcomed Nationwide's announcement. Ceri Pearce, sales and marketing director at Taylor Wimpey said: 'The increase in the maximum loan to value on new build houses to 95 per cent will make it easier for buyers to secure a mortgage with a smaller deposit, and the extension of mortgage offers to nine months will give borrowers greater certainty and flexibility during the construction process. 'These changes reflect a strong commitment to supporting the housing market and responding to the underlying demand for new homes.' Adrian MacDiarmid, of Barratt Redrow, added: 'Improving affordability and access to home ownership helps underpin housebuilders' confidence to invest in order to deliver the homes that this country needs. 'We look forward to continuing to work with Nationwide Building Society to support our mutual customers.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
AsiaOne
30-05-2025
- Health
- AsiaOne
'Your cue to show some care': LTA rolls out new Helping Hand card for commuters who need more assistance, Singapore News
Commuters who need a little extra help when using public transport will soon have a simpler way to ask for it — with the launch of a new card under the Helping Hand scheme. In a Facebook post on Friday (May 30), the Land Transport Authority (LTA) said that commuters can indicate the type of assistance they need — such as directions, help with tapping their fare card, or being alerted when they reach their stop — on a blank space at the back of the Universal Helping Hand card. "Spot someone carrying a bright yellow card? That's your cue to show some care!" Said LTA on their Facebook post, adding that the card makes it easier for staff or other commuters to offer the necessary help. The Helping Hand scheme is an initiative by the Caring SG Commuters Committee to foster a more caring, welcoming and inclusive public transport system. In March, then-Senior Parliamentary Secretary for Transport Baey Yam Keng said in his ministry's Budget debate that the new card will be in addition to the earlier cards issued under the scheme. Under the initiative, the LTA first piloted the "May I have a seat please" sticker in October 2019 to help passengers be aware of those with hidden or invisible medical conditions who need a seat more for their public transport journeys. It later included a lanyard and card for passengers with long-term conditions in April 2021, while the sticker version is more suitable for people with short-term medical conditions. Two new cards were later introduced in May 2023 — a "This is a wheelchair" card which helps paediatric wheelchair users alert public transport staff and other passengers to give way to them, and a "Please alert me when I am approaching my stop" card for passengers with visual impairments or conditions like dementia. More than 15,000 lanyards and cards were distributed as last November and feedback "has been positive", said then-Minister of Transport Chee Hong Tat on February. Just like the three cards, the new Universal Helping Hand card has a bright yellow look. In a Facebook post on Friday, Baey, who is now Minister of State for Transport, said that the new card was developed based on commuter feedback, which recognises that those travelling on public transport have different needs. "I hope this makes commuting more inclusive and comfortable for everyone," he added. LTA said that commuters can collect the new card at passenger service services in MRT stations and bus interchanges, as well as SimplyGo ticket offices. AsiaOne has contacted LTA for more information on the new Helping Hand card. [[nid:697657]] chingshijie@
Daily Mirror
15-05-2025
- Business
- Daily Mirror
Nationwide announces change to mortgage rules in major first-time buyer boost
The high street lender has reduced its stress rates - which are used to determine if they can afford to continue to pay their mortgage if interest rates rise - by between 0.75 and 1.25 percentage points Nationwide has announced a major change to its mortgage affordability calculation from today. The high street lender has reduced its stress rates by between 0.75 and 1.25 percentage points. A stress test is used to determine whether a borrower can afford to continue to pay their mortgage if interest rates rise. This is normally set at a certain percentage point above the lender's standard variable rate (SVR). Nationwide says the change means borrowers will be able to borrow £28,000 more on average from today. It applies to first-time buyers - who can also benefit from the Helping Hand mortgage, which lets eligible applicants borrow up to six times their income - as well as home movers fixing their deal for at least five years. The largest boost to the borrowing amount is expected on remortgages where there is no additional borrowing. Nationwide says these fall outside the flow limit and are therefore unlikely to be capped at 4.5 times income. Nationwide estimates that a first-time buyer using the Helping Hand mortgage and with a £55,000 salary will see the maximum amount they can borrow jump from £304,200 to £330,000. Someone moving home with an income of £75,000 will be able to borrow £336,800, up from £307,000, while those who are remortgaging on a £45,000 salary will be able to borrow up to £278,100, up from £235,500. Henry Jordan, Nationwide's Director of Home, said: 'Affordability remains a key challenge and this change, along with our well-established and popular Helping Hand proposition, shows we're serious about tackling it. 'Whilst the FCA's clarification on affordability stress rates could support increased levels of home ownership, the Bank of England's flow limit dampens its potential impact. 'That's why Nationwide continues to call for a review of the 15% limit, so that we, and other lenders, can help more people access the long-term benefits of home ownership.' Santander was the first major lender to reduce its stress test rates and said it means someone applying for a residential mortgage can now borrow between £10,000 to £35,000 more, depending on their individual circumstances. HSBC also followed suit, and said 20,000 more customers are able to get a mortgage, alongside being able to borrow larger amounts. The average increase in offer for first-time buyers will be £39,000. Lloyds Banking Group has also reduced the stress rates used in its standard affordability calculation and on its five-year fixed mortgages. and said it could mean someone applying for a mortgage could borrow £38,000 more. This includes Lloyds, Halifax, Bank of Scotland and BM Solutions.
