for more information about cookies and how to alter your preferences.
29th March 2021
A NORTH-EAST building society is to launch a new low deposit “Local Heroes” mortgage to help key workers onto the property ladder.
Darlington Building Society has acted swiftly following Chancellor Rishi Sunak’s recent Budget announcement of a new Government indemnity on 95 per cent loan to value (LTV) mortgages.
However, instead of using the Government mortgage guarantee scheme, the Society will be returning to the 95 per cent LTV market using its own third-party insurance provider.
This means local first-time buyers will only need a five per cent deposit with the product being available before the Government scheme launches in April.
The new product will be exclusively available to “local heroes” where at least one individual on the mortgage is a key worker in the following professions: Health & Social Care; Emergency / Security Services; Education & Childcare; and Other Critical Services such as Supermarket, Bank, and Building Society workers.
Darren Ditchburn, the Society’s Chief Customer Officer, said: “We are really excited and proud to be supporting local first-time buyers who are playing such a vital role as key workers during these unprecedented times.
“We recognise the amazing job they have done, and it is one of the ways we, as a local building society, can say thank you – by helping them to take that crucial first step on the housing ladder.”
Darlington Building Society has a history of supporting first-time buyers in the 95 per cent LTV market, but its product had to be withdrawn when the Covid-19 crisis struck.
However, while other financial institutions withdrew from the market, DBS remained open for business by continuing to offer one of the few 90 per cent LTV mortgages available, while retaining its personalised approach to making lending decisions.
Now, following the Chancellor’s announcement of a Government guarantee on 95 per cent mortgages, more mainstream lenders will be encouraged to come back into the high LTV market.
“We expect to see a high level of demand for 95 per cent mortgages, and that’s why we have decided to provide priority access to local first-time buyers who are key workers in those vital sectors listed,” added Mr Ditchburn.
“Other products have been introduced that have been exclusively available to NHS staff, but we wanted to widen the scope as much as possible to help more key workers onto the property ladder.”
Watch out for fraud
Remember to be vigilant when you receive communications from someone claiming to be us. Be wary about any communication from someone asking for personal details. You can find out more about fraud and cyber-crime by visiting the Action Fraud website: www.actionfraud.police.uk