Mortgage round up for first time buyers
- 17th September 2013
- Buying Property News
First time buyers should act quickly to get a great deal on their mortgage rate before rates creep up.
With mortgage rates still at record lows and house prices on the up, now is the perfect time for first-time buyers to snap up a great deal before it is too late.
Recent research by moneyfacts shows than the interest rate on an average two-year fixed rate mortgage has dropped from 4.65% to 3.65%, three-year fixed rates have fallen from 5.02% to 3.92% and five-year fixed rates have dropped from 4.73% to 3.87%.
These low rates are due to the Bank of England’s Funding for Lending scheme, which was launched to encourage lending to house buyers and small businesses by offering cheap finance to banks.
Stephen Ludlow, Chairman of ludlowthompson, says: "The Funding for Lending scheme has pushed mortgage rates down, and this has led to more first time buyers being able to get themselves on the property ladder.
"It is uncertain how long these low rates will be around for, so buyers might want to consider snaping up a great deal while it is still available."
Here are some examples of the most competitive mortgages on the market:
- HSBC – Two-year fixed rate at 3.59%, five-year fixed at 4.39% or a lifetime tracker at 3.00%. Each with a fee of £1,499, but can be reduced to £999 if you open a HSBC current account.
- Skipton Building Society – Two-year fixed rate at 3.99% for borrowers with a 10% deposit, and no fee.
- Yorkshire Building Society – still offers the lowest five-year fixed rate at 2.49% with a £1475 fee, for buyers with a 35% deposit.
- First Direct- 3.79% with a 15% deposit and no fee.
The Funding for Lending scheme has pushed mortgage rates down.
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