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6 of the best mortgages for first-time buyers

6 of the best mortgages for first-time buyers

Category: Mortgages

Updated: 28/11/2014
First Published: 05/11/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Are you looking to get on the property ladder? Then you'll need the right mortgage to suit! First-time buyers (FTBs) typically have smaller deposits than those further up the ladder, while upfront costs will need to be kept to a minimum – and that's why it's so important to find the best deals. So, with that in mind, here we've outlined the top six mortgages for first-time buyers – products that have been specially selected for their low deposit requirements and minimal application fees – to help you take that first step towards homeownership.

Rate Mortgage type/LTV Details

Mansfield bs
4.05% Discounted variable rate, max 95% LTV
  • Available for house purchases up to 95% LTV
  • £199 booking fee
  • Discounted variable rate for two years (1.54% discount), after which it reverts to an Existing Borrowers Rate of 5.59% for the remaining term
  • APR cost for comparison: 5.5%
  • Incentive package of free valuation
  • Allows overpayments

This mortgage from Mansfield BS easily takes the top spot with an impressive discounted variable rate of just 4.05% – and an equally as impressive booking fee of just £199 to keep upfront costs to a minimum.

An incentive package of free valuation is included in the deal, while the option of making overpayments adds to the benefits and could be ideal for those looking to reduce their mortgage balance before interest rates rise. However, unlike its fixed rate counterparts, variable rates and subsequent repayments could change, so proactive budget management will be necessary.

Rate Mortgage type/LTV Details

Norwich &
Peterborough BS
4.99% Fixed for two years, max 95% LTV
  • Available for house purchases up to 95% LTV
  • No booking or product fees
  • Rate fixed for two years, after which it reverts to an Existing Borrowers Rate of 4.99% for the remaining term
  • APR cost for comparison: 5.2%
  • Allows overpayments, underpayments and payment holidays
  • Flexible option available

In second place is this 95% mortgage from Norwich & Peterborough, offering a highly competitive rate of 4.99% fixed for two years.

The bonus of having absolutely no product fees makes this product great value for money, and the additional flexibility could make it even more appealing for would-be borrowers.

Rate Mortgage type/LTV Details

Post Office
4.99% Fixed to 31/12/16, max 95% LTV
  • Available for house purchases up to 95% LTV
  • £199 booking fee
  • Rate fixed to 31/12/16, after which it reverts to 4.49% variable for the remaining term
  • APR cost for comparison: 4.7%
  • Max loan amount £500K
  • Allows overpayments
  • Available for those using Help to Buy scheme

Achieving a top-three spot is this mortgage from Post Office, which offers a competitive rate of 4.99% fixed until December 2016.

Its low booking fee adds to the appeal, making it an ideal choice for those looking to utilise the Help to Buy scheme.

Rate Mortgage type/LTV Details

Clydesdale Bank
4.89% Fixed to 31/01/2018, max 95% LTV
  • Available for house purchases up to 95% LTV
  • No product fees
  • Rate fixed to 31/01/2018, after which it reverts to an Existing Borrowers Rate of 4.95% for the remaining term
  • APR cost for comparison: 5.1%
  • Allows overpayments
  • Incentive package of free valuation fees and a refund of one month's mortgage payment (max £1,000)

Next up is this 4.89% fixed rate deal from Clydesdale Bank, with its longer term allowing you to keep your repayments in check for over three years.

The generous incentive package, lack of valuation fees and option of overpayments makes it a highly cost-effective and flexible choice for the first-time buyer looking to keep upfront costs under control.

Rate Mortgage type/LTV Details

Furness BS
4.99% Fixed for five years, max 95% LTV
  • Available for house purchases up to 95% LTV
  • No product fees
  • Rate fixed for five years, after which it reverts to a variable rate of 5.54% for the remaining term
  • APR cost for comparison: 5.5%
  • Max loan amount of £500K
  • Allows overpayments

Just making the top five is this deal from Furness Building Society, offering a competitive rate of 4.99% fixed for a full five years – the ideal way to beat the rate rise.

Its lack of product fees adds to the appeal, while the flexibility of allowing overpayments make it ideal for those who want to reduce their mortgage balance.

Rate Mortgage type/LTV Details

Post Office
5.45% Fixed to 31/12/19, max 95% LTV
  • Available for house purchases up to 95% LTV
  • No product fees
  • Rate fixed to 31/12/19 after which it reverts to a variable rate of 4.49% for the remaining term
  • APR cost for comparison: 5.0%
  • Max loan amount of £500K
  • Allows overpayments
  • Available under Help to Buy

Post Office has done it again with a second Help to Buy mortgage making the top six. Its 5.45% deal is fixed until December 2019, making it another great choice for those worried about interest rate rises.

Borrowers can also benefit from no booking fees whatsoever, with the option of overpayments adding to the flexibility and overall appeal of this product.

Information & Rates correct as at: 05.11.2014

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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