Good news for first time buyers

First time buyers generally only get bad news – all they hear about is prices rising, interest rates increasing, market uncertainty thanks to Brexit, high deposits…

However, there is finally some good news – mortgages for first time buyers have just got cheaper, and there’s much more choice of mortgages for these buyers available now.

First timers typically take out high loan to value (LTV) mortgages, enabling them to buy a house with a small deposit, such as 5%, and borrowing the balance. Even though mortgage rates have been increasing overall, the interest rates for 95% LTV mortgages have been reducing: the average interest rate on a two-year fixed rate mortgage is currently 3.46%, compared to 3.98% a year ago.

And the best deal on the market currently is 2.86% from Barclays – this offers a 0.63% better rate than the best deal available 12 months ago, offering a potential saving of £68 a month on a £200,000 mortgage over 30 years.

To support the first-time buyers’ market, there are now nearly 300 95% LTV fixed rate mortgages available, an increase of nearly 50% from 12 months ago.

‘Buying a home is a huge investment and high prices have kept it out of the reach of many for years. It looks like the cost of buying a home has just got a bit easier for first time buyers as prices have finally stopped rising and mortgages are cheap,’ said Brian Brown, head of insight at Defaqto.

Louise Lewis, mortgage consultant at smarthomes estate agent commented, ‘It’s a great time for first time buyers to take advantage of the rates and choices that are now available. I work closely with all of our customers to help them secure the best deal, whilst also making sure they understand how any interest rate changes can affect their monthly payments.’

To see what properties smarthomes currently have for sale please click here:

https://www.smart-homes.co.uk/search-properties/for-sale-solihull

Article source:

https://www.propertywire.com/news/uk/first-time-buyers-can-find-cheaper-mortgages-than-a-year-ago/