Mansfield Building Society, a Nottinghamshire lender with 25,000 depositors, has begun offering a 100% mortgage to first-time homeowners buying in partnership with a housing association.

The mortgage is the first to cover the full value of borrowings by new homeowners since Abbey withdrew its last 100% product 18 months ago. It is a sign of increasing efforts to get first-time buyers to enter the housing market.

Nationwide announced a 125% mortgage in July to allow homeowners in negative equity to move, but that still required a deposit worth 5% of the new property.

Financial Times

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