It has lent £2.5 billion to 20,000 first time buyers, doubling the amount it lent in the same period last year and almost matching the amount it lent to 24,000 first time buyers in the whole of the previous financial year 2011/12.
Given its size, Nationwide would be expected to lend to around 10% of all first time buyers. These latest figures show that the Society has lent to almost twice that amount, by offering mortgages to more than 18%*of all first time buyers.
It also said that nearly a third, 30%, of all the Society’s lending in the first six months of this financial year, excluding further advances, was to first time buyers.
More than 22,000 prospective first time buyers have welcomed the traditional approach of saving directly for a mortgage in the lender’s Save to Buy scheme, which offers 95% LTV lending and up to £1,000 cash back. This year it was extended to include cash ISAs.
Nationwide offers first time buyers a £500 discount on its product fees and has continued to support a wide variety of affordable housing schemes, participating in both NewBuy and MI New Home from their inception. Indeed the very first customers to complete under each of the new schemes did so with a Nationwide mortgage.
In addition, last month, the Society launched a major initiative to boost the nation’s capabilities in housing, money management skills and communities. As part of this it pledged to help 750,000 people into a home of their own.
Meanwhile, HSBC said that it has responded to growing demand from customers seeking a fixed rate mortgage by offering it’s lowest ever two year fixed rate of 1.99%. Borrowers with a 40% deposit or equity can secure the rate for a fee of £1,999, or £1,499 for HSBC current account holders.
‘While there remains a low expectation of bank base rate increasing in the near future, it has been a week of surprises at the Bank of England and as yet we don’t know whether the new Governor will bring a change of heart within the monetary policy committee,’ said Peter Dockar, HSBC head of mortgages.
‘We have seen increasing numbers of customers seeking the security of a fixed rate and I expect this trend to continue. With the security of our retail deposit funding, HSBC is committed to offering competitive rates to benefit our customers,’ he added.
Rachel Springall, finance expert at Moneyfacts.co.uk, said that the HSBC 1.99% deal has the lowest rate for a two year fixed mortgage on the market.
Other new HSBC rate changes include a 60% LTV two year fixed at 2.49% with £599 fee; a 60% LTV five year fixed at 3.19% with £499 fee and a 60% LTV five year fixed at 3.39% fee free. In addition, HSBC continues to offer its current mortgage range for homebuyers with a 10% deposit including: a 90% LTV five year fixed at 4.69% with £899 fee and a 90% LTV two year discount at 3.84% with £999 fee.
