Young first time buyers not offered the best mortgage rates?

Lenders advise that in 2012 they plan to offer more of the best mortgage rates to first time buyers. Clydesdale and Yorkshire Banks has said that according to their figures around a third of all mortgage applicants are aged 25 years or under, and many first-time buyers feel that their young age goes against them. These young borrowers believe in general that the mortgage rates offered to them are not as competitive as to older applicants.

Figures show that the first-time borrower average age is 30. Lenders figures also show a difference in average property prices that can be afforded for the different age groups, from around £104,000 for the under 25s to around £240,70 for those buyers who are aged from 31 to 35 years old. Young first-time buyers advise that they often feel penalised for their age and kept away from the best mortgage rates because lenders assess them as a higher risk for investment.

As part of a pledge to support young first-time buyers, the Clydesdale and Yorkshire Banks have introduced some of the best mortgage rates for those wanting to get a foot on the property ladder. Their new products range offers some of the best mortgage deals available with rates between 5.49 per cent and 6.19 per cent, include a new option at 5.69 per cent which is fee-free and fixed for 3 years. There are other lenders who have started to offer an increased range of first-time products this year which is due to property industry pressures pushing lenders to stimulate the market. HSBC has announced it's commitment by introducing plans to lend at minimum of £15 billion to mortgage borrowers in 2012 of which £3 billion has been earmarked for young first-time buyers.