Which are the best mortgages for first time buyers?

HSBC might claim to have the best mortgages for first time buyers due its recent pledge to beat or match other lenders 90% LTV offers. However all is perhaps not as it first seems.

The HSBC first time buyer mortgage price promise sounds great until you consider not all lenders are included, and if you don't have an HSBC current account the fee charged will be £1,499.

There are many more deals on offer market-wide for first time buyers, so a 'whole of market' review is necessary if you are to end up with the best mortgage for your circumstances.

First time buyer property purchases are increasing due to lower rates at higher LTV levels. This sector of the market rose 45% in July, with transactions totalling 26,100 for the month. First timer buyer mortgages are therefore increasing in number to match demand.

Mortgage choice at the lower deposit end of the market has grown so now first time buyers have more products to chose from.

If for example you are looking for the best mortgage with a 10% deposit fixed for 2 years, Skipton has fee free mortgage deals on offer from 3.99%. The Hanley Economic BS also offers a low fee deal, for a £300 fee the rate offered is 4.09%

If you are looking for the extra security offered by a 5 year fixed rate mortgage, then Skipton offers a rate of 4.68% for up to 90% LTV with a £995 fee. The Coventry offers a slightly higher rate deal at 4.75%, but with fees of £199 it could work out cheaper overall.

There are currently many low rate deals on offer from smaller lenders, therefore a search of the entire market is a must to find out which truly are the best mortgages for first time buyers.

If you want to climb on the property ladder you are advised to call Deal Direct as one of our highly skilled impartial advisers, can search the entire market to find you the most affordable mortgage to match your needs.

Call today for a quote on 0800 048 8828.