Taylor Wimpey has negotiated an exclusive mortgage guarantee scheme, paving the way for 95% mortgages for first-time buyers.
The Take5 deal, with Melton Mowbray Building Society and Saffron Building Society, is being offered initially in three regions – the East Midlands, East Anglia and East London.
It means that buyers could now secure a two-bedroom home with a deposit of just £5,750.
The new mortgages have interest rates of between 5.49% and 5.99%.
Pete Redfern, group chief executive at Taylor Wimpey, said: “We have been working hard to secure this mortgage deal which we believe will make all the difference to those who aspire to own their own home but find it difficult to save for the large deposits needed.
“Discussions are at an advanced stage with other lenders to support this initiative as part of a range of practical and workable solutions to get more first-time buyers moving.”
John Eastgate, Saffron’s sales and marketing director, said: “With rental prices and the cost of living rising, many prospective first-time buyers are simply not able to save the substantial deposits required of many current mortgages.
“We know that there are many potential borrowers who are capable of supporting a mortgage but are ‘frozen out’ of the market by the large deposits required. As such, we are delighted to be supporting new borrowers in taking out a mortgage on a new Taylor Wimpey home.
“Affordability remains a core priority with every mortgage that we underwrite, particularly given the potential for rising interest rates. Our use of manual underwriting is particularly appropriate for the first-time buyer market, and we look forward to supporting these new customers throughout the life of their loans with us.
“It is our view that the first-time buyer crisis can be alleviated in part though common-sense lending and schemes such as this one from Taylor Wimpey.”
Comments
@Wardy
"4 x joint salaries does buy people property"
That actually makes my heart sink. So people need to borrow 8 x one salary to put a roof over their head and, somehow, find the money to repay the massive amount of capital and the interest on that capital for 25 years - and, for most people, hope to have and raise a couple of kids.
And, at the same time, pay taxes to repay the debt we are taking on in their name. At the moment we're paying £120 MILLION in interest EVERY DAY. When will we stop taking debt on in their name? At the moment the talk is of halving the DEFICIT (not the DEBT) in 4 years. So, this year we'll borrow another 160 billion, next year 140 billion, year after that 120 billion and the year atter that 100 billion ... and those figures are based on optimistic growth forecasts and spending cuts. Say it takes another 6 years to get to the point where we have no annual deficits. Currently government debt is about a trillion. By the time we stop borrowing and get into surplus it will likely be 1.75 trillion - personally I think it's more likely to be 2 trillion.
If we repaid that debt at 50 billion a year (a big chunk of government income) it will take 40 years to repay the debt. If, as is likely, the government is forced to roll over repayment of chunks of the debt, who knows what interest rates they'll have to pay in future to borrow the money to repay the money?
The last government (and this one by continuing their insane borrowing) is taking a massive risk with our children's future. That our children are already royally shafted is without doubt - there is the very real danger that, in the future, the whole thing will fall apart as the debt burden is simply too high.
So, please, can we not have house prices that require 4 x joint salary mortgages to buy them. At least give our kids some sort of break. There won't be any money to pay for our old age needs if we continue as we are.
Mike,
I partly agree, but there is plenty of opportunity for those that want to work. We are having a government company literally begging us to take apprentices on at the moment. Not all have to go to university (as you can tell from my grammar, I didn’t)
Affordability in terms of mortgage repayments is there, 4x joint salaries does buy people property. Its the deposits that are the issue. I agree toxic mortgages where a large part of the problem but now the situation has gone full tilt in the other direction. Banks are being TOO risk adverse, and that is what hit the market hardest.
Send the kids aboard by all means, don’t forget they will still do very well when you peg it and hand down all that lovely equity to them....see glass is half full!
Actually I'd say FTBers of the UK does have a point.
Young people have been, and will continue to be, royally shafted.
1) They're the first generation to be stuffed with university tuition fees - and this is going to get worse. So those who go to university will be starting out with debts of say 20k to 40k
2) Those who don't go to university (and those that do) have endured the poorest education standards in a century (thanks New Labour for that). There are few apprenticeships so if you don't do a degree what else is there - call centre work at minimum wage?
3) House prices in many parts of the country have gone up by between a factor of 3 and 6 driven by fraudulent bank lending which resulted in bank bankruptcy, bail outsand a credit crunch
4) The increase in house prices mean young people are having to pay a lot more for a roof over their head than previous generations (I know we've all had it hard, but I bought a 2 bed maisonette in West London when I was 27 on 2.4 times my (single) income. That maisonette would now sell for getting on for 300k - 15 times average earnings. Aspiring to own a house now means 2 people working, kids in nursery all day etc. etc.
5) The bank bailouts and credit crunch have caused a recession which, any way you look at it, means that by 2015 the country will have a debt of about a trillion pounds. I won't be paying this back, nor the interest on it. Young people will still be paying this back in 50 years.
6) We have an ageing population and young people will have to pay increased taxes all their lives to fund our care and our pensions and the debt we took on in their name.
7)Just to top it up, the last government went nuts on Private Finance Initiatives. All the schools and new hospitals will still be being paid for in 30 years time. Again paid for by people who are young now.
I'm actively encouraging my children to emigrate when they are older. I don't see why they should spend their whole lives up to their ears in debt to put a roof over their heads and to pay off the debts Gordon Brown took on to build a client state of public sector workers doing jobs like 'Pathway Development Officer' on 70k a year or 'Diversity Co-ordinator' or (I kid you not) 'Cheerleading Development Officer' and 'Walk Organiser'
What this has to do with Estate Agents I have no idea - so why FTB whatever his name is feels the need to slag estate agents off is beyond me.
Gordon Brown, New Labour and the banks are to blame for the mess we're in - and for the specific fact that young people are really having the mickey taken out of them.
mortgage with Northern Rock??
May I respectfully suggest that you cut agents out of the equation completely? How good will it be for you to NEVER deal with one?
You can buy through your local newspaper in the private ad section (next to the seconhd hand BMX's). You can look on your local shop windows to see what they have, or you can use a private selling website (Quite a lot of them now).
Why do you even bother to contact agents? You clearly dislike them, so buy your house elsewhere. Or is it because you STILL can't afford them via other sources because YOU can't afford the current value.
I would advise of waiting until you find someone special and buy a house together. However, after seeing how pathetic and disgusting your posts have been, you've got more chance of a 60% price reduction than meeting a nice lady.
Do you not have a life? Calling an agent to moan about the fact you can't afford a house?
From experience, if someone such as yourself calls up for a rant - a) i know you will not bring any business my way and b) i will choose not do business with you anyway, so the easiest thing to do is agree, say goodbye and never speak to you again.
This little story, amongst your whole argument is pointless.
@ Ray Evans - Thank you
@FTBers of the the UK
The lack of responses is because nobody thinks you have anything interesting to say, and maybe finding you slightly strange that you obviously have a bit of an obesession with estate agents (maybe you aspire to be one?)
Maybe you should go out and get youself a job, then start saving up for when that 60% reduction comes along.
Thats me for the day.
Have a great evening
I am so unbelievably angry at this theft, and the lack of reponses, by the people on this site. [ALL VESTED INTERESTS AND LIARS]
That I just called the partner of a local [award winning] estate agent, and 'blew off' at him.
The result is that I actually have a much better opinion of Estate Agents than I did prior to the call, because he absolutely agree with everything I have said.
YOU PEOPLE WHO DISAGREE ARE NOT ESTATE AGENTS. [YOU ARE VESTED INTERESTS]
THE LAST THING ON YOUR MIND IS THE SATE AGENCY INDUSTRY.
Last post. Disgusting parasites, you are.
Down you go. Thank Brown. Than Labour.
Good Riddance/...... :0)
You know what? Fine, you want an answer to that read it yourself.
You talk about the banks and the government stealing your money. You talk about debt tranfers and you mention houses three times. Once to talk about prices in general, once about how you can't afford to buy, and once about your neighbours house. How is any of that my fault? Did I ask people to lie about their income to support a stupidly high mortgage? No, I actively tried to talk people out of it. and yet YOU dare to 'speak' to me that way? You, who has taken no regard for the thoughts, opinions or feelings of those who may have seen your pathetic whining?
You do not know me. You do not know my history, my morals or my beliefs on anything. And to be perfectly honest, I wish that you had done as you said and deleted this page.
@FTBers of the the UK
Whatever your opinion is of Country Lass posts the language you have used against her is an utter disgrace.
May I respectfully suggest you leave this site until you learn some manners
I think it is highly insulting that your alias suggests you are 'the' voice of the FTB - you are not. The majoirty I have spoken to are motivated, sensible and intelligent people - quite the opposite to you.
You make it sound like you personally have 'bailed out the banks'. You've contirbuted a few quid, just like everybody else. End of.
According to your HPC bible, the average house prices are currently BELOW the trend. Where the hell did you pluck this 60% figure from?!
I doubt that PeeBee will give you his number, I think he's mentioned before that he's aready married.
@FTBers of the UK
No ones going to answer your arguement, because you don't have one in the first place. Your just a very bitter person, thats nobody elses fault.
Yes, you have copied and pasted some statisitcs (which we have seen like 1000 times), wow, well done. I agree house prices are quite high, but they are what they are.
If you are that bitter about life, move to another country
Only one person thinks we have anything to talk about, pal. And I - nor anyone else posting here, apparently - don't hold that person's judjement in any regard at all.
Go give your head a shake.
I dread to think what you were employed as. PR, maybe?
I note the 'was' in your post... not surprising.
Country lass, how dare you attempt to preach MORALITY, without first answering this argument:
You disingenuos pathetic floosy.
A large section of society, and future generations, will suffer, because the bankers have "privatised profits and socialised losses" of speculators, [Debtors] who continue to benefit from profits, by not taking any losses, and by pushing those losses onto society at large via the government and the regulators. These people should be held accountable and responsible for their actions.
Instead of that, my money is being stolen, by my government, to pay to keep the banks assets, my neighbours house, massively overinflated. Ensuring I can never afford my own house. I understand it was undisputed fraud behind the manipulation of rising house prices and that a debt transfer has taken place.
This debt has been transferred onto me. Without the bank bailouts, house prices would have crashed by over 50% And returned to their long term median affordability.
For you to win I have to lose. This is clearly theft of my money
PEEBEE. BE MAN POST YOUR PHONE NUMBER.
I WILL BE HAPPY TO CALL YOU.
Pee Bee. Whats your phone number?
Every OWNER of an Estate Agent, I have talked to, agrees with me.
S
Ok, as has been pointed out before, this is an open site. Everyone is entitled to their views and opinions.
@FTBers of the UK - Do you hear us attacking your line of work? No. Do you hear me questioning exactly why you seem to believe you can insult anyone you choose under the guise of 'speaking for everyone'? No. In fact has ANYONE on this post treated you with the complete and total lack of respect you have shown to this industry? No.
In fact, if you have read some of the other posts on different stories, you would realise that many of us would like to change the way this industry is run, but the world doesn't work that way.
At the end of the day, this site is here to inform people of news in the property industry, and to allow discussion on those topics. The issue here is not whether you believe that the government and banks 'stole' your money. As I am a fair-minded person, I will say that I am unhappy about the way the banks and the system are treated, however what can I do about it? Will life magically be made be better by abusing random people who, at the end of the day, did not cause the problems and are suffering the same as you?
Please bear in mind that your comments may cause offence, and whilst you are being so coarse and confrotational it is highly unlikely anyone would wish to speak to you.
'FTBers of the UK' - you come on here with that as a name - yet you bring yourself and those you profess to represent into pure disrepute.
You act like a spoilt child. Grow up and only consider joining the adult world when you can understand that life is not fair - and it DOESN'T OWE YOU ANYTHING.
Thank goodness that for every ONE of you there are THOUSANDS who can carry on a reasoned debate without resorting to your idiotic behaviour.
This is how pathetic these EA are, and they all know house prices are 60% overpriced.
And that's coming from me, who worked for a major housebuilding company.
[We all felt the same way]
Over and out/
@FTBers of the the UK -
Id rather not thank you, I dont need an irate stalker in my earhole. Your sole purpose is obviously to come on here and wind people up.
I dont mind a healthy debate but abusing this site with foul language only makes you look like an idiot.
Thanks
@FTBers of the the UK -
This world doesn't owe you anything, its people that work hard the acheive things. I would love a super car and a bigger house, but I will have to keep plugging away and who knows maybe one day it will become a reality.
Stop being bitter - the main word here is CHOICE - you can choose to buy or not to buy a house, you can choose to use an agent or not use an agent.
By the way their is a system for cutting the agents out, you can put an advert in the corner shop window or in the local paper, or create your own website, lots and lots of choices.
I heard if Taylor Wimpy dont start shifting stock then their are "big issues" for them - FTB's better if saving than simply losing their deposit as they move in - would lose less money on buying a new car off the forecourt IMO.
Save you money - come back in 24 months when prices have sllpped to where they should be :)
@FTBers of the the UK:
Please do not be so insulting, it does whatever case you have no good at all.
May I suggest you stop spending your time on this site and go and work more until you have obtained eneough to afford the time to and also eneough savings to afford to buy? It may be more difficult now but most of the older generation did not have it easy either, they had to go without and scrimp and save. Doesn't apply to everybody I know but could to many.
@FTBers of the the UK:
Please do not be so insulting, it does whatever case you have no good at all.
May I suggest you stop spending your time on this site and go and work more until you have obtained eneough to afford the time to and also eneough savings to afford to buy? It may be more difficult now but most of the older generation did not have it easy either, they had to go without and scrimp and save. Doesn't apply to everybody I know but could to many.
A large section of society, and future generations, will suffer, because the bankers have "privatised profits and socialised losses" of speculators, [Debtors] who continue to benefit from profits, by not taking any losses, and by pushing those losses onto society at large via the government and the regulators. These people should be held accountable and responsible for their actions.
Instead of that, my money is being stolen, by my government, to pay to keep the banks assets, my neighbours house, massively overinflated. Ensuring I can never afford my own house. I understand it was undisputed fraud behind the manipulation of rising house prices and that a debt transfer has taken place.
This debt has been transferred onto me. Without the bank bailouts, house prices would have crashed by over 50% And returned to their long term median affordability.
For you to win I have to lose. This is clearly theft of my money t aint gonna happen Estate Agent Today.
We all know whats happened.
95% LTV on an already over-priced new-build? Yeah, good luck with that one; hope they don't mind being in negative equity within 12 months.
I'm presuming the mortgage product alluded to in the article will no-doubt be a two-year fix. Given the likelihood they will have less than 0% equity, looks like they'll be heading for a shaft-tastic SVR to contend with.
Still, at least they can say they're 'home-owners'.
What this does not tell us is how have Taylor Wimpey managed to get two fairly risk adverse societies to gave these loans and exclusively, why are they not available to the whole market??? Are TW underwriting them??
But what ever well done!
On first reading this looks very good but I would like to see the 'small print'