A new 125 per cent
mortgage which has been offered by
Coventry Building Society is "good news" for
first-time buyers, an expert has claimed.
The move also highlights the need for
mortgages of this kind for first-time
buyers, stated Louise Cuming, head of mortgages at Moneysupermarket.com.
Furthermore, Coventry's new mortgage option is more cost effective than those of its main competitor,
Northern Rock, by removing the valuation and undercutting the arrangement fees.
However, Ms Cuming remarked that only first-time buyers with a very good
credit history will qualify for the mortgage.
"This is a niche product and will not be appropriate for all," she commented.
"Unfortunately, those who might be most in need of a product such as this are the most likely to be refused these higher percentage
lending rates.
"Therefore, prospective first-time buyers need to be aware that the conduct of their
credit could severely affect the percentage borrowing and the
mortgage rate ."
Several experts, including Ray Boulger of John Charcol, have recently noted that more diverse products could help many first-time buyers to find a mortgage.
