The best mortgage rates for first time buyers
First time buyers are currently seeing lenders announcing the best mortgage rates for quite some time as the markets predict that interest rates will remain low until early 2015.
Home buyers with small deposits or slight equity in their current property and first time buyers are being offered lifeline deals from some lenders. Some of these lenders include Marsden and Hinckley and the Yorkshire Building Societies and HSBC all with offers of 90 per cent LTV (loan to value) deals. The HSBC has announced it has put aside 3 billion pounds for first time buyers in 2012 with the launch of new 90% LTV mortgage products.
The resurgence of the 90 per cent mortgage will be welcome news for home buyers looking for the best mortgage rates, especially those that are first time buyers.
The Bank of England base rate during February has remained at 0.5 per cent and according to economists it is set to stay there until 2015 when there are predictions of a rate rise. This could mean the best mortgage rates from lenders look likely to remain for some time yet and more choice for borrowers. As interest rates look unlikely to move within the next two years a longer term fixed rate or tracker mortgage looks an interesting option. Current competitive market deals include the Yorkshire Building Societies five-year fixed rate mortgage with a rate of 4.79 per cent and a fee of £995 and the high street bank HSBC lifetime tracker mortgage with a rate of 4.59 per cent and a fee of £599.
