Banks launch flash sales for ‘first-time buyer’ mortgages as they become as ‘rare as Glastonbury tickets’
BANKS are launching mortgage flash sales for home buyers with small deposits as the deals become as "rare as Glastonbury tickets".
It comes as lenders have pulled popular first-time buyer mortgage deals following the coronavirus crisis.
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The deals are only available on loans of up to £350,000 for houses and bungalows, and not for those buying a flat.
'As popular as Glastonbury tickets'
Aaron Strutt, of mortgage broker Trinity Financial, said he's never seen mortgage flash sales over just one day before.
He added: "TSB is telling first-time buyers to take it or leave it, since if they don’t get this deal, they face losing the house they want.
In comparison, the average five-year, fixed rate mortgage for borrowers with a 40% deposit is a lower 2.03%, down from 2.07% on January 1.
There are currently just 12 mortgage deals with a 5% deposit, 46 with a 10% deposit and 357 deals with a 15% deposit.
This compares to 386 5% deals in January, 751 10% deals and 658 15% deals, Moneyfacts said.
"This temporary reintroduction will allow us to manage our service levels as well as give customers a chance to get their first home."
Barclays and NatWest last week cut the amount home buyers can borrow by up to 18%, leading to fears more lenders will follow suit.
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Meanwhile, Nationwide is refusing to lend to first-time buyers whose entire deposit has been gifted to them, by the bank of mum and dad for example.
Furloughed workers are struggling to get a mortgage too, as lenders wait until the scheme ends and redundancies begin to take affect before offering loans.