Strong mortgage demand for Society

Strong mortgage demand for Society

Loughborough Building Society has withdrawn its 90% LTV first time buyer mortgage product from national availability but has kept funds for local people within LE, DE and NG postcodes.

Gary Brebner, chief executive of The Loughborough, says:

 “Since the credit crunch struck, homebuyers have generally been forced to find deposits of 20-30% unless the ‘bank of Mum and Dad’ helps out.  Many would-be first time buyers can’t get onto the housing ladder, which in turn slows down movement further up. A lot of people are shocked when they hear that the average age of an unassisted first time buyer is now 37!

“With so few 90% LTV products on the market, our 1% discount off the standard variable rate has ‘flown off the shelf’, proving particularly popular amongst first time buyers. Over a six week period, we have agreed a new mortgage every day for a local person. This is our most popular mortgage product, so clearly when the product is right, the demand is there. As our roots are very much in our East Midlands heartland, we’ve kept some funds for people living within the local area as we remain committed to supporting the communities in which the majority of our members live.”