Great Britain

Nationwide triples minimum deposit for UK first-time buyers

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
–––––––––––––––––––––––––––––––

Football news:

Zinedine Zidane: Hames is an important player. I wish him a happy birthday
Atalanta controlled the ball for 8 minutes and 11 seconds before the first goal against Juventus
Jovic will be able to play with Villarreal if the third test for the virus is negative
Hodgson on Zaa threats: He did the right thing when he let people know. There is no excuse for this
Setien on Messi's rest: Of course, he needs it. But the score in the match against Valladolid was too slippery
Immobile – the fans of Lazio: Some people seem to have too short a memory. Leave my family alone
Holand was kicked out of a nightclub in Norway