Interest free deposit for new buyers

25-Jun-2008

One new home developer is to offer first-time buyers an interest-free loan amounting to up to a quarter of a property's value, it is reported.

Taylor-Wimpey is to take on some of the negative equity risk, in what the Times describes as a "desperate" attempt to increase sales.

New buyers can then apply for a normal mortgage to cover the remaining 75 per cent of the value, the newspaper explains.

Taylor-Wimpey comments: "We believe that this is exactly the kind of scheme that will help first-time buyers get their foot on the property ladder," the publication notes.

Also this week, price comparison website moneysupermarket.com described first-time buyers as being the "lifeblood" of the British housing market.

It remarked that mortgage providers have done a "complete U-turn" on risk, which is hitting buyers with no deposit or just a small amount saved.

This, it added, means new buyers in particular are affected.

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