The best mortgages may soon become hard to get - for some.
Sourcing the best mortgages may be about to become far more difficult especially for those who are first time buyers and already struggling to get onto the property ladder. Recently George Osbourne
the Chancellor suggested that the FPC (Financial Policy Committee) would be given powers to cap the ratios of LTV (loan to value) within the mortgage market.
This news has dismayed buyers in general but particularly first time buyers saving for deposits as they may have to save for larger deposits to make the first step onto the property ladder. No concrete details were given on the Bank of England's Financial Policy Committee's powers to limit lenders deals in the mortgage market and these new powers are not set to come in until early 2013.
In recent times lenders have seen an increase in enquiries from first time buyers up from the previous month by at least 5% and the mortgage market has also become a lot more competitive.
There appears to be much more choice around and some of the best mortgages for borrowers with a 5 per cent deposit are now appearing. First time home buyers with a 10 per cent deposit are able to access more deals with much more desirable rates so saving up a larger deposit will reduce your monthly mortgage repayments.
Some of the best mortgages on offer for fist time buyers with a small deposit can be found with Lloyds TSB, they have a three-year fixed rate mortgage with a rate of 4.09 per cent but this does come with a fee of £1,094. If you have a 10 per cent deposit then the HSBC are offering a two-year discounted rate mortgage with a rate of 3.84 per cent and this deal has a free arrangement fee.
