February 2012 so which mortgage is best for first time buyers?
For those wanting to know which mortgage is best for first time buyers, the Halifax have answered by launching a range of new products. According to research by 'Moneyfacts', the Halifax are not alone as the number of low deposit mortgages is on the increase, giving hope to those wanting to take their first step onto the property ladder.
First-time buyers wanting to know which mortgage is best for them will now find more mortgage products available. For those who can get together deposits of 5 to 10 per cent, more mortgage products will be accessible. The number of first-time buyer property purchases increased in 2011, this increase has been attributed to a drop in property prices and an improvement in mortgage rates. The Halifax has advised mortgage repayments for new borrowers in the latter half of 2011, were at their lowest when taken as a proportion of borrowers actual disposable income, in fact the figures show the lowest levels in 14 years.
First time buyers asking which mortgage is best for them are advised to shop around. Many lenders are starting to introduce new offers aimed specifically at this sector. For instance the Halifax has launched a new product for the first-time buyer market, a 2 year discounted mortgage is offered to first time buyers at 3.84 per cent for up to 90 per cent LTV and is fee free. They say that this is the only mortgage that is offered with rate under 4 per cent for first-time home buyers. For the first 2 years the mortgage rate will be 0.1 per cent below the lender's SVR, currently at 3.94 per cent.
