While many homeowners have seen increased rates as a result of the recent Bank of England base rate rise, there’s some great news for First-Time Buyers with just a 5% deposit.
With increased competition from a growing number of mortgage providers keen to attract First-Time Buyers and the prospect of retaining them for the longer term, there is a much larger range of deals available which is driving fixed rates to record lows.
The latest Moneyfacts.co.uk figures show that both the average two-year fixed mortgage rate at 95% loan-to-value (LTV) and the average five-year rate have reached their lowest value since Moneyfacts began recording this data in 2007. “For first-time buyers who often feel they get the short end of the stick, this is fantastic news,” said Moneyfacts.co.uk finance expert Charlotte Nelson.
“Many would have expected 95% LTV rates to rise, but instead, in just one month the average two-year fixed rate has actually fallen from 3.95% to stand at 3.73% today, a whopping 0.22% lower.”
Whether you are a First-Time Buyer looking for a two-year fixed deal or something longer, there is a great opportunity to secure a lower cost deal than ever.
However, with uncertainties surrounding the UK economy, these deals may not be around for too much longer.
If you are a First-Time Buyer, contact us today to make an appointment with one of our experienced mortgage brokers, and benefit from independent mortgage advice, designed to secure you the best deal.