The UK’s biggest building society has tripled the minimum deposit on house purchases for first-time buyers.
It said the change, starting today, was due to “these unprecedented times and an uncertain mortgage market”.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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 –––––––––––––––––––––––––––––––
-
Should you add your child to your credit card?The Explainer You can make them an authorized user on your account in order to help them build credit
-
Cracker Barrel crackup: How the culture wars are upending corporate brandingIn the Spotlight Is it 'woke' to leave nostalgia behind?
-
'It's hard to discern what it actually means'Instant Opinion Opinion, comment and editorials of the day
-
UK house prices fall at fastest rate for nearly 14 yearsSpeed Read First-time buyers may welcome the news but higher than expected inflation means mortgage costs remain an issue
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right nowSpeed Read Britain is currently in the grip of an ‘employment crisis’
-
Will the energy war hurt Europe more than Russia?Speed Read European Commission proposes a total ban on Russian oil
-
Will Elon Musk manage to take over Twitter?Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
-
Shoppers urged not to buy into dodgy Black Friday dealsSpeed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
-
Interest rates: why the long era of ever-cheaper finance is finally overfeature Bank of England is warning that hikes are ahead as inflation soars
-
Ryanair: readying for departure from LondonSpeed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
-
Out of fashion: Asos ‘curse’ has struck againSpeed Read Share price tumbles following the departure of CEO Nick Beighton
