Whatever your deposit, get a low mortgage rate if you can.
Getting a low mortgage rate is important for anyone looking for a mortgage, but for first time buyers it is crucial. The deposit you can save is likely to be the biggest influence on the rate you can get. For first time buyers this can be the biggest hurdle.
At Deal Direct we source the lowest rates from lenders to offer you the cheapest deals no matter what your level of deposit. The larger deposit you have, the lower rates are likely to be, but there are offers from lenders to suit most situations.
Figures from a recent survey suggest that over 20% of first time buyers will raise a deposit of less than 10% for a property purchase. This can restrict the number of mortgages and the different options that are available. Access to the most competitive low mortgage rate offers will be limited.
The Government's £80 billion funding for lending scheme has helped to increase mortgage availability. Many lenders have offered attractive deals for low loan to value mortgages, but there have been less offers with a small deposit.
The typical purchase price for a first time buyer is estimated at £150,000, which requires £15,000 for a 10% deposit. However, the number of homes available in the market at this price is said to be falling, adding to first time buyer difficulties.
The good news is that, there have been signs that the choice for potential buyers with small deposits is increasing. For example, Leeds Building Society and the Co-operative Bank and have recently launched low mortgage rate deals.
Call Deal Direct for the latest rates.
