Could There be New First Time Buyer Deals on The Cards?

by Mark Johnston

Could There be New First Time Buyer Deals on The Cards?

Mortgage rationing has meant would be first time buyers, unable to build up a hefty deposit, have been priced out of the market.

It seems that even with the ‘funding for lending scheme’now fully up and runinng the majority of mortgage products have been aimed at those with a stake of 25 per cent or more but the tide is gradually starting to turn and more lenders are at last looking for a piece of the action in the first-time buyer (FTB) sector of  the market.

Experts feel that this renewed focus on new buyers is long overdue and a step in the right direction finally.

SPF Private Clients chief executive Mark Harris has predicted that conditions should improve further for first time buyers: “As lenders saturate the low loan to value market with a plethora of rock bottom rates, they will be forced to turn to the higher loan to value bracket if they are going to do any significant levels of business, which will mean cheaper rates and more choice for first time buyers in particular.”

The latest longer term first time buyer deals from Santander are currently amongst some of the best 90 per cent rates on the market. The Santander 90 per cent loan to value (LTV) five year fix at 4.99 per cent is another competitively priced option, again pushing for number one spot with Nottingham building society at 4.74 per cent and £299 fee.

Chelsea Building Society who is owned by the Yorkshire building society  has also weighed in with an interesting first time buyer mortgage proposition this week.

The building society is offering a range of two year products including  85 per cent loan to value (LTV) with a rate of 2.24 per cent and with a £495 fee; and 4.49 per cent 90 per cent loan to value (LTV) with a £1,495 fee.

Sunjeev Sahota, Chelsea Building Society product manager  said “we have listened to first time buyers, and we recognise that each individual case is unique, but this new mortgage range with offset, cash back, competitive rates and exceptional customer service highlights our focus and determination to offer excellent mortgages and to continue helping first time buyers step onto the property ladder”.

In addition, the Co-operative Bank has also launched a wider range of reduced rates specifically suitable for first time buyers borrowing at 90 per cent and 85 per cent loan to value.

James Hillon, head of mortgages at The Co-operative Bank said “with the Christmas rush upon us and a new year fast approaching it’s a good time to review your finances and to look at ways to cut down on outgoings in 2013. We are determined to give customers a helping hand and at a time when the average mortgage arrangement fee is over £1400, we are offering fee free mortgages across all loan to values (LTV), in addition to a wide range of market leading rates.


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