Product focus: First time buyers - Mortgages - News - Moneyfacts


Product focus: First time buyers

Product focus: First time buyers

Category: Mortgages

Updated: 01/06/2011
First Published: 01/06/2011

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 It is now over 6 months old so the content may be out of date.

When bank base rate fell too its all time low of just 0.50%, there were just 85 mortgages available to borrowers with just a 10% deposit or less.

Today, that number has risen to 283 and the increased competition has meant that rates have started to become more competitive for first-time buyers.

Below are a selection of some of the deals on the market.

Skipton Building Society

  • The majority of the deals available to borrowers with just a 5% deposit require the borrower to have a guarantor for the mortgage.
  • One of the best deals not requiring a guarantor for the mortgage is from Skipton Building Society who is offering a rate of 5.99% fixed until 31 July 2013.
  • A £195 booking fee is payable for the mortgage, which has a maximum advance of £250,000 for first-time buyers.

The Co-operative Bank and Britannia

  • Borrowers looking to fix their mortgage repayments for five years are being offered a rate of 5.89% until 31 August 2016.
  • The deal is available to borrowers with a 10% deposit and is subject to a £150 booking fee and a £849 arrangement fee.
  • The mortgage offers flexible options and is portable.


  • For borrowers after a tracker mortgage then the lowest rate is being offered by HSBC.
  • The lender is offering a deal of 4.19% plus bank base rate (currently 4.69%) for the term of the mortgage.
  • No fees are payable to secure the deal and no exit penalty is applied, so borrowers can move to a new deal without penalty if required.

Find the best mortgage for your first home - Compare first time buyer mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!