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Barclays has joined forces with housebuilder Bovis Homes to offer a mortgage to help buyers with only small deposits purchase a new build property.
The group’s lending arm the Woolwich is offering a two-year fixed rate mortgage of 4.99% to people with only a 10% deposit who are buying a Bovis home.
The deal, dubbed ‘The Perfect 10′ mortgage, is considerably cheaper than the current best buy two-year fixed rate mortgage for people borrowing 90% of their home’s value of 5.98%.
It also fills a gap in the market, as very few lenders are prepared to advance high loan-to-value ratios on new build properties due to problems with valuations and mortgage fraud.
Read more: http://www.channel4.com/news/articles/business_money/bankandbuilder+mortgage+launched/3674907
