First time buyers need mortgage rates help?
Many potential first-time buyers are showing a lack of awareness of current mortgage rates and lenders loan to value. For some individuals this lack of awareness is adversely affecting their ability to get a mortgage deal. While mortgage products at 95 per cent LTV have recently hit a four year high, many first-time buyers fail to get on the housing ladder because they remain unaware that 5 per cent deposit deals are now available from lenders.
Currently there are around 59 deals available from roughly 21 different lenders who offer products at various mortgage rates and LTV levels aimed at first-time buyers. The number of products available supporting the first-time buyer sector has experienced a significant increase from just from 9 in 2010. There is approximately £210 million worth of mortgage finance available for first-time buyers with a 5 per cent deposit, should they wish to pursue a deal.
Since the eighties and nineties first-time buyer numbers have dramatically fallen. Since the credit crisis, lenders LTVs rose to levels that were beyond most average buyers ability to attain through saving. However of late, lenders have introduced new deals in the 90 and 95 LTV range but, unfortunately many first-time buyers are unaware that such low deposit deals are available again. There is still a widespread perception among many first-time buyers that a 15 or 20 per cent deposit will be required by lenders. Many simply do not realise that there are now more 90 per cent and 95 per cent LTV mortgages available a competitive mortgage rates.
