A North East building society is launching a new mortgage which allows key workers to buy homes without having large deposits.
Darlington Building Society is bringing back its 95% loan to value (LTV) mortgages for families where at least one member is a key worker.
The mortgages - where only a 5% deposit is needed - will be available to people working in health and social care, the emergency services, education and childcare, plus other critical services such as supermarkets, banks and building societies.
Darren Ditchburn, the society’s chief customer officer, said: “We are really excited and proud to be supporting local first-time buyers who are playing such a vital role as key workers during these unprecedented times.
“We recognise the amazing job they have done, and it is one of the ways we, as a local building society, can say thank you – by helping them to take that crucial first step on the housing ladder.”
Darlington Building Society withdrew its most recent 95% mortgage at the start of the pandemic.
But following Chancellor Rishi Sunak’s announcement that the Government would guarantee the loans, a number of financial institutions have brought them back.
But rather than using the Government mortgage guarantee scheme, the society has arranged its own third-party insurance provider.
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Mr Ditchburn added: “We expect to see a high level of demand for 95% mortgages, and that’s why we have decided to provide priority access to local first-time buyers who are key workers in those vital sectors listed.
“Other products have been introduced that have been exclusively available to NHS staff, but we wanted to widen the scope as much as possible to help more key workers onto the property ladder.”