In Brief

Nationwide triples minimum deposit for UK first-time buyers

Average minimum deposit rises by more than £20,000

The UK’s biggest building society has tripled the minimum deposit on house purchases for first-time buyers.

Nationwide has increased the minimum they will have to stump up from 5% to 15%, reports the BBC.

It said the change, starting today, was due to “these unprecedented times and an uncertain mortgage market”.

According to Nationwide’s price index, the average UK house now costs £218,902, meaning a new buyer will need a minimum deposit of at least £32,835 compared with £10,945 before, says The Guardian.

Banks and building societies are concerned that rising unemployment resulting from the coronavirus pandemic could cause house prices to fall, trapping some people in homes worth less than their mortgage, says The Independent.

Henry Jordan, the director of mortgages at Nationwide, said that “as a responsible lender, Nationwide needs to ensure borrowers can afford mortgage payments and are, as much as possible, protected against the potential for negative equity, should house prices decrease.

“Our priority at this time must be to help members keep their homes.”

House prices fell in March, April and May, according to Halifax, though they are 2.6% higher than the same time last year.

“Looking ahead, we expect market activity to increase progressively as restrictions are eased further across the whole of the UK,” says Halifax’s managing director, Russell Galley.

–––––––––––––––––––––––––––––––For a round-up of the most important stories from around the world - and a concise, refreshing and balanced take on the week’s news agenda - try The Week magazine. Start your trial subscription today –––––––––––––––––––––––––––––––

Recommended

What Met Police’s ‘special measures’ means for the force
Metropolitan police officers
Why we’re talking about . . .

What Met Police’s ‘special measures’ means for the force

The countries where abortion is illegal
US abortion-rights activists march toward the White House
In Depth

The countries where abortion is illegal

What happened to Zara Aleena?
Zara Aleena
In Brief

What happened to Zara Aleena?

‘Prince Andrew is next target’
Today's newspaper front pages
Today’s newspapers

‘Prince Andrew is next target’

Popular articles

Are we heading for World War Three?
Ukrainian soldiers patrol on the frontline in Zolote, Ukraine
In Depth

Are we heading for World War Three?

When will paper £20 and £50 notes expire?
Paper banknotes
Business Briefing

When will paper £20 and £50 notes expire?

Ten Things You Need to Know Today: 27 June 2022
10 Downing Street
Daily Briefing

Ten Things You Need to Know Today: 27 June 2022

The Week Footer Banner