Good news for first-time buyers
It’s no surprise that those still the hardest hit when it comes to buying property are first-time buyers. Despite Government schemes, stamp duty abolishment and even reduced deposits with certain properties from new build developers, it’s still incredibly difficult for people to buy their first home. But, to bring a little more positivity for first-time buyers, mortgage rates at the higher loan-to-value (LTV) tiers have seen significant reduction over the last few years. The average two-year fixed rate mortgage within the 90-95% LTV tiers has fallen by 2.08% to 3.25% as mortgage providers compete for this business. There are also more products available within this LTV tier too, bringing more choice. With first-time buyers most likely to need either a 5% or 10% deposit, this is welcome news. It means once the deposit is saved for, repayments can be calculated for affordability with more favourable rates to be had.
Shop for the best deal – and quickly
And it’s not just first-time buyers or those looking to borrow at the top end 90-95% LTV tier who can benefit from better rates. There’s been ample rate reductions across the 70% and 90% tiers as much as the low-risk 60% – 70% tiers. Mortgage providers are squeezing their margins to win business and all borrowers can capitalise on some savings by taking advantage of the competition that’s out there. For those with standard variable mortgage rate, there’s never been a better time to consider fixing your mortgage rate. But if you’re thinking of doing it, act quickly as the best deals may not be around for long. These fixed interest rates are unlikely to fall much further but if you’re in doubt, a mortgage advisor can always help you find the best deal for you and your circumstances.
Buying new, especially for first-time buyers can help make your money stretch further. Not only are many new build properties available at competitive prices but you can benefit from having appliances included or offers on deposits. And then there’s further savings to be had through the properties being more energy-efficient, helping to keep your monthly bills low. To find out about new build homes available in your area, take a look.
