Twitter Facebook RSS FEEDS

First-time buyer mortgage rates hit three-year low

Tuesday, 10 May 2011 12:13 PM

Rates on 90 per cent mortgage deals for first-time buyers have dropped below six per cent for the first time in three years, MoneyFacts.co.uk has reported.

Research by the financial comparison site revealed that the average rate on a two-year, fixed-rate mortgage at 90 per cent loan-to-value is now 5.98 per cent. The last time the figure was below six per cent was March 2008.

Not only has the cost of a 90 per cent mortgage fallen by 0.4 per cent over the past year, but the amount of such products on the market has increased by 41 per cent since this time last year, to 220 deals from 48 mortgage lenders.

At the moment, Skipton Building Society is offering a 95 per cent mortgage; HSBC and Yorkshire Building Society are among those offering mortgages to first-time buyers with a deposit of ten per cent.

However, Michelle Slade, MoneyFacts' spokesperson, warned: "Just because the products are on the shelf, it doesn’t mean that they are within easy reach.

"The mortgage market still has a way to go before it returns to any sort of normality."

Want to be the first to know when we break a story? Follow @AboutProperty on Twitter and subscribe to our free weekly newsletter. 

Related stories

Terraced grey brick houses

Signs of recovery for first-time buyer mortgages

First time buyers with smaller deposits are enjoying the first signs of recovery in the mortgage market, according to new analysis.

 First-time buyers receive the keys to their property

New 95% mortgage launched for first-time buyers

Principality’s Assisted First-Time Buyer deal allows families to use their savings to secure mortgages for relatives.
Lending to first-time buyers may have increased, but so have their mortgage costs. Image:Thinkstock

Boost for first-time buyers and NewBuy

More loans available for first step on the property ladder as Halifax reveals details of mortgages for new-build homes.

Wealthy buyers are starting to take a disproportionate share of the market. Image:Thinkstock

First-time buyers benefit from mortgage increase

Rise in approvals reflects better deal for customers with a low deposit and those aiming for cheaper properties, says e.surv.

The increase in lending to first-time-buyers is expected to be temporary. Image:Thinkstock

Stamp duty effect boosts mortgage lending

Surge in loans to first-time buyers as holiday came to an end but more loans to home movers too, says Council of Mortgage Lenders.

 The reductions apply to three-year fixed rate mortgages.

Banks cut mortgage rates for first-time buyers

Yorkshire and Clydesdale offer new rates on 90 per cent and 95 per cent loans.
Houses on a hill in Bath

Mortgage-lending on the up for first-time buyers

The number of loans granted to house-buyers increased in April, with a particularly substantial rise for FTBs.

 Mortgage loan agreement contract with house keys

Number of first-time buyers increases

Over 18,000 first-time buyers secured mortgages in June – nearly a third more than in May.
First-time buyers viewing a property

No deposit required for new 100 per cent mortgage

Could the first 100 per cent mortgage of recent times be a sign that the banks are suffering amnesia? Aldermore reckons not.

 Overall loans for house purchase were three per cent higher in 2011. Image:Thinkstock

Lending boost for first-time buyers

Survey shows rise in mortgages with deposit of 15 per cent or under as lending conditions ease.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.