The number of best rate mortgages increase for first-time buyers

The number of best rate mortgages offered to first time home buyers is increasing. First-time buyers who have just a 10 per cent deposit or home-owners who have 10 per cent equity built up in their home, will find that lenders have extended their range of competitive mortgage dealss.

The Yorkshire Building Society has reduced it's 3 year fixed rate mortgage which is now down to 4.69 per cent for 90 per cent loan to value. This mortgage deal also benefits from an extremely low £495 arrangement fee which makes it one of the best rate mortgages available at this loan to value. Although the deal isn't aimed solely at first-time buyers, the rate offered should appeal to those to those wanting to get a foot on the first rung of the housing ladder.

Moneynet.co.uk's Andrew Hagger commented saying that this is most definitely an attractive rate for borrowers who only have a small amount of equity built up in their home. He added that those home-owners who have only a minimum 10 per cent deposit have actually been paying too high mortgage rates for a long time, in some cases borrowers have been paying more than 5 per cent for their deal. Any lender mortgage rate reductions will be welcomed by borrowers but for those who have been able to save a larger deposits lenders will offer more competitive rates.

The Yorkshire Building Society also offer another of their best rate mortgages for those borrowers who have a 15 per cent deposit, their alternative 3 year fixed rate deal is available at 3.89 per cent. Mr Hagger commented that this is a great rate but advised that many mortgage borrowers could find it difficult to raise such a large deposit.