Taylor Wimpey says it has negotiated an exclusive mortgage-guarantee scheme that can provide 95% loan-to-value mortgages for first-time buyers.
The house builder’s Take5 deal, backed by Melton Mowbray Building Society and Saffron Building Society, means that a two-bedroom home can be secured with a deposit of just £5,750, compared with the UK average of £28,770.
Loans are available at rates of 5.49% and 5.99%, fixed for two years, and are backed by insurance, the cost of which is covered by Taylor Wimpey.
Although currently only on offer in three regions (East Midlands, East Anglia and East London) the developer’s group chief executive, Pete Redfern, says discussions are at an advanced stage with other lenders to extend the initiative.
Earlier this week, Housing Minister Grant Shapps called on key players in the UK housing industry to work more closely together to help first-time buyers get a foot on the property ladder.
House builders, lenders, insurers, councils and consumer groups attended a summit hosted by the Minister, to discuss how they could step up their efforts to help young people who aspire to own their own home.