With NewBuy mortgage rates rising where can first time buyers turn?
Lenders mortgage rates for the New Buy scheme launched just a few weeks ago, are already rising.
The scheme is already under question with reports that the first lenders to sign up are already increasing rates.
The NewBuy scheme is aimed at helping first time buyers onto the housing ladder. Under the scheme the Government together with house builders, will underwrite loans with just a 5% per cent deposit. This provides the opportunity to for purchases a home at 95% loan to value.
When the scheme was launched the best mortgage rates were offered by NatWest. However the initial rates for both 2 and 5 year fixed products have already been increased by 0.5%. Woolwich has also increased its rates for NewBuy products so if you want to sign up to the limited deals available you may need to act quickly.
Not all mortgage products for 95% loan to value are part of the NewBuy scheme. With the NewBuy rate increases other lenders not signed up to the scheme may offer more competitive rates for loans with small deposits.
It may be some time before the real impact of the NewBuy scheme can be measured. The initial indication seems to be that due to the limited number of lenders currently in the scheme, there are better deals in the wider mortgage market.
If you are a looking for a mortgage for the first time it can be a complicated process. Call Deal Direct for friendly and professional advice. We can guide you through finding a product that suits your situation. We can source the best mortgage rates available.
