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Stop press – Top First Time Buyer Mortgages

Stop press – Top First Time Buyer Mortgages

Category: Mortgages

Updated: 02/12/2013
First Published: 02/12/2013

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 It is now over 6 months old so the content may be out of date.

The launch of the Help to Buy scheme has dramatically opened up the mortgage market to first-time buyers (FTBs). Before April this year it would have been difficult for those with a 5% deposit to get access to a competitive mortgage, but with competition in the market ramping up there are now plenty of opportunities to get on the housing ladder.

So, with that in mind, we've put together our pick of the top 5 mortgages for first time buyers to help you find the right mortgage for your needs:


HSBC
4.79%
Fixed to 31/03/2016, max 95% LTV
  • Available for house purchases up to 95% LTV
  • £99 booking fee
  • Rate fixed to 31/03/2016, after which reverts to an Existing Borrowers Rate of 3.94% for remaining term
  • Max loan amount of £400K
  • Allows overpayments

Penny says: "Part of HSBC's Help to Buy range, this Moneyfacts best buy has stormed to the top spot with an impressive rate of 4.79% – and an equally as impressive booking fee of just £99 to keep upfront costs to a minimum.

"Borrowers can go on from that to benefit from an Existing Borrowers Rate of just 3.94%, and with the option of overpayments it could be a great choice for those looking to get out sooner."



Norwich & Peterborough Building Society
4.89%
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 reverts to an Existing Borrowers Rate of 4.99% for remaining term
  • Min loan amount of £50K
  • Allows overpayments, underpayments and payment holidays
  • Incentive package of free valuation, no arrangement fees and a £500 rebate
  • Flexible option available

Penny says: "Just missing out on first place is this 95% mortgage from N&P, offering a highly competitive rate of 4.89%.

"The lack of product fees combined with the generous incentive package of free valuation and £500 rebate makes it great value for money, and the additional flexibility could make it even more appealing for would-be borrowers."



Melton Mowbray Building Society
4.79%
Discounted variable for three years, max 95% LTV
  • Available for house purchases up to 95% LTV
  • £199 booking fee, £599 completion fee
  • Discounted variable rate for three years (0.20% discount), after which reverts to an Existing Borrowers Rate of 4.99% for remaining term
  • Min loan amount £25K
  • Allows overpayments
  • Available as an offset option and offers refunded valuation fees

Penny says:"Achieving a top three spot is this mortgage from Melton Mowbray BS, offering an impressive 4.79% discounted variable rate.

"The booking fees are still highly competitive while the incentive of refunded valuation fees can help reduce any upfront costs."



Yorkshire Bank
4.99%
Fixed to 31/03/2017, max 95% LTV
  • Available for house purchases up to 95% LTV
  • No product fees
  • Rate fixed to 31/03/2016, after which reverts to an Existing Borrowers Rate of 4.95% for remaining term
  • Min loan amount £25K
  • Allows overpayments
  • Free valuation fees and a £250 rebate

Penny says: "In fourth spot is this 4.99% fixed from Yorkshire Bank, with the Existing Borrowers Rate of 4.95% being equally as competitive.

"The generous incentive package, lack of valuation fees and option of overpayments makes it a highly cost-effective and flexible choice, with the slightly higher initial rate meaning it just missed out on the top three."



HSBC

4.99%
Fixed to 31/03/2019, max 95% LTV

  • Available for house purchases as up to 95% LTV
  • £99 booking fee
  • Rate fixed to 31/03/2019, after which reverts to an existing borrower rate of 3.94% for remaining term
  • Max loan amount of £400K
  • Allows overpayments

Penny says: "HSBC has done it again with a second 95% mortgage making the top five, this time its 4.99% fix to 2019 – a great choice for those worried about the possibility of interest rate rises.

"Borrowers can also benefit from a low booking fee of just £99, with the option of overpayments adding to the flexibility and overall appeal."

Information & Rates correct as at: 02/12/2013.

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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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