UK lender offers 98% mortgage to first-time buyers – but bars bank of mum and dad
https://www.theguardian.com/money/2025/sep/13/uk-98-per-cent-mortgage-first-time-buyers-newcastle-building-society
Posted by Shiny-Tie-126
UK lender offers 98% mortgage to first-time buyers – but bars bank of mum and dad
https://www.theguardian.com/money/2025/sep/13/uk-98-per-cent-mortgage-first-time-buyers-newcastle-building-society
Posted by Shiny-Tie-126
5 Comments
This won’t end well
They’re just allowing people to borrow more. If everyone can borrow more house prices go up to match borrowing
I’m a home owner and this will only benefit me and I’m still against it.
The solution isn’t allowing people to be deeper in the hole. It’s fixing stagnant wages and increasing housing stock until normal people can afford homes
This could be very dangerous for those doing it too. At 98% LTV a dip in the market could easily put you into negative equity.
They should just let people on UC claim housing for mortgages, im on UC cant save because rent is 1250 a month, if I do save my UC will stop. How is it better to pay me housing for 50yrs than help me buy a house in 30?
We’ve already had two doing 100% mortgages and one doing 99% mortgages. 98% isn’t really a headline until big banks or Nationwide start doing it.
How can they bar mum and dad from gifting to their children?
The bit about barring gifted deposits seems very difficult to enforce without getting invasive about also barring all kinds of other fairly normal activity.
If your parents were to give a big gift on a birthday or Christmas, or help you out by paying some of your expenses while you put money into savings, either now or any time in the past, that would have the same net effect of transferring money from them to you.