The best rates mortgage lenders offer, give hope to first-time buyers in 2012.
First-time buyers are enjoying a good start to 2012 thanks to the best rates mortgage lenders offer on 95 per cent LTV deals. Recent research from the Bank of Scotland has revealed that because buying has become cheaper than renting, now is the perfect time for first-time buyers to get onto the property ladder.
The Guardian recently compiled a list of the best rates mortgage lenders are offering to first-time buyers in the UK. However none of the 'new entrants' to the UK mortgage market appeared on the list.
Most of the new lenders to have emerged in the last two years are struggling to compete with established mortgage providers. According to brokers, some new entrants are failing to price their rates competitively against the rates offered by high street lenders and others restrict their deals to only the very lowest risk borrowers. Analysts have however said that some of the new entrants are helping the market through targeting niche customers, such as those with an adverse credit history.
On the Guardian list of the best rates mortgage lenders offer are, the Mansfield Banking Society who offer a first-time deal at 4.99 per cent which reverts to the lender's SVR of 5.59 per cent at the end of the term. The Leeds who are offering a first-time buyer 2 year discount mortgage from 5.25 per cent, the Ipswich who also have a 2 year deal but at 5.75 per cent and the Newcastle who offer a first-time buyer deal at 5.95 per cent.
