Nationwide Bans ‘Bank Of Mum And Dad’: First-time Buyers Must Prove They Saved 75% Of Deposit Themselves

Nationwide Bans ‘Bank Of Mum And Dad’: First-time Buyers Must Prove They Saved 75% Of Deposit Themselves

Nationwide has established that first-time purchasers will now have to show at the least 75percent of the deposit originated in their very own cost savings, instead of being gifted or lent it from the ‘Bank of Mum and Dad’.

The building society, which will be the UK’s 2nd biggest mortgage company, has introduced the changes to make certain purchasers have the ability to manage their home loan.

The move comes simply months after Nationwide announced they’d only lend to people that have a deposit of at the very least 15%, as a result to issues that property owners may find on their own in negative equity if house prices drop as a total outcome associated with the pandemic.

With research from Savills showing that 40% of all of the mortgaged first-time-buyers had some help from family unit members a year ago, this latest modification will likely make it harder for all to purchase their very first house. Continue reading