Lenders lure nervous buyers back with new incentives

Lenders lure nervous buyers back with new incentives


Small signs are beginning to emerge in the housing market that the worst (whisper it) is over. Buyer confidence is up, broker confidence is bouncing back and the number of mortgage products has risen for the second month in a row. 

Moreover, the number of innovative mortgage products offering incentives to tempt first time buyers into the market is on the increase.


Halifax has introduced a deal offering to pay up to £1,000 of a homebuyer’s council tax bill for one year upon taking out any Halifax mortgage for a new home, with a minimum deposit of 10%.


Abbey has slashed its rates for borrowers with only a 10% deposit and has reduced its fees from £2,499 to just £995.


Woolwich has cut its rates on its two, three, four and five year fixed-rate mortgages and, on average, offset trackers by 0.35%. The lender has also re-launched four of its deals for homebuyers with only a 20% deposit.


Additionally, the Co-op is helping first time buyers borrow more by allowing guarantors for the mortgage repayments.


Although these incentives may not match the pre-crunch deals of little deposit and where free Rover cars (West Bromwich Building Society, 2004) and home cinema systems (Scarborough Building Society, 2006) were chucked into home loan deals, it serves as a positive sign that the freeze in the housing market is beginning to thaw.

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