Up to £5,000 for nothing as Halifax and Persimmon match your deposit if your a first time buyer

Good news for first time buyers, Halifax have teamed up with building company Persimmon in a spectacular deal to save you some money whilst getting onto the property ladder. The deal is that whatever a first time buyer has in a Halifax instant access account up to the value of £5,000 they will match the amount which could give you £10,000 to put towards the deposit, provided you purchase a Persimmon home.

With this deal and the possible scrapping of the stamp duty for first time buyers raised by the government this week to kick start the UK housing market; it could be a perfect time to buy a persimmon home. With the tricky mortgage conditions, we have seen mortgage companies wanted on average at least 10 percent of the property value for a deposit, which amounts to around £15,000 for a typical house purchase. Also to remember the hiked up Lenders fees and the high interest rates we have been seeing this year, has made it almost impossible for a first time buyer in indeed a homeowner needing to move onto a bigger property.

Even though this is a great deal to be offered something for nothing, it still will not go far in the present mortgage market. Banks have been skeptical on lending on new builds, as they have been more susceptible to loss their value. Halifax is offering a 7.64 percent for buyers who have a 5 percent deposit on a 5 year fixed deal. On a £200,000 loan, monthly repayments on this deal would cost £1,122 a month. Halifax has also said that they cannot guarantee that they can offer the mortgage to anyone; they would need to see regular deposits for a minimum of six months.

A 10 percent deposit on a property worth £100,000 would qualify with most lenders but if you are looking to purchase a property for £200,000 you would need £20,000 as 5 percent deposit on a property of this value would restrict the number of lenders who would qualify you for the loan considerably.

To qualify for the best mortgage deals out there you would probably need to have a 25 percent of the house price for the deposit if you wanted to snap one of the cheaper deals up.

Source: Timesonline
Read more about UK mortgages here.