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Top 6 first-time buyer mortgages

Top 6 first-time buyer mortgages

Category: Mortgages

Updated: 06/09/2013
First Published: 06/09/2013

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 It is now over 6 months old so the content may be out of date.

First-time buyer lending has surged in recent months, with the latest industry figures showing that borrowing to this group has now reached pre-credit crunch levels.

At the same time, mortgage rates have been falling and product numbers for those with only a small deposit have grown considerably since the launch of Government initiatives such as the Funding for Lending Scheme and Help to Buy.

This means now might be the perfect time to take that first step onto the property ladder.

So have a look at our list of the top mortgages for borrowers with only a five or ten percent deposit.

Top 6 first-time buyer mortgage:

Skipton Building Society
Skipton Building Society
3.99% fixed to 30/09/2015
  • Maximum LTV 90%
  • Rate fixed for 2 years
  • No product fees
  • Incentive: £160 rebate
  • Allows overpayments and payment holidays
  • Maximum advance: £500K

Penny saysPenny says…
"Top of the Moneyfacts Best Buys for first-time buyers is this product from Skipton Building Society offering a fixed rate of 3.99% for two years.

"Further boosting this deal's appeal is the fact that it charges no fees and offers a £160 rebate to borrowers."

Hanley Economic Building Society
Hanley Economic Building Society

4.09% fixed to 31/10/2015
  • Maximum LTV 90%
  • Rate fixed for 2 years
  • Fees: Arrangement £300
  • Incentives: Free valuation fees (max £240); £250 rebate
  • Allows overpayments
  • Borrow from £30K to £475K

Penny saysPenny says…
"In second place, Hanley Economic Building Society's product is still highly competitive offering a market-leading fixed rate of 4.09%.

"Borrowers will benefit from a low fee and generous incentive package including a £250 rebate."

Furness Building Society
Furness Building Society

3.45% discounted variable rate for 3 years
  • Maximum LTV 90%
  • Discounted variable rate for 3 years
  • Fees: Completion £995
  • Allows overpayments
  • Borrow from £20K to £500K

Penny saysPenny says…
"This low rate from Furness Building Society should appeal to borrowers who don't mind taking a risk that rates might increase over the three-year term.

"This product allows overpayments and first-time buyers can borrow up to a maximum of £500,000."


Nottingham Building Society
Nottingham Building Society

4.39% fixed to 01/09/2018
  • Maximum LTV 90%
  • Rate fixed for 5 years
  • Fees: Booking £100, arrangement £199
  • Incentive: Free valuation fees
  • Allows overpayments

Penny saysPenny says…
"For borrowers looking to fix for five years, Nottingham Building Society offers the top rate.

"The reasonable fee and incentive package that includes free valuation fees will further add to its appeal."

Yorkshire Bank
Yorkshire Bank

5.49% fixed to 30/11/2016
  • Maximum LTV 95%
  • Rate fixed for 3 years
  • No product fees
  • Incentive: Free valuation fees
  • Allows overpayments

Penny saysPenny says…
"Yorkshire Bank offers the leading rate to borrowers with only a 5% deposit.

"This product charges no fees, so borrowers won't have to worry about paying any upfront costs. Incentives include free valuation fees."

Leeds Building Society
Leeds Building Society

5.69% fixed to 30/11/2018
  • Maximum LTV 95%
  • Rate fixed for 5 years
  • Fees: Booking £199
  • Incentives: Free valuation fees (max £335); free valuation admin fees
  • Can make overpayments
  • Minimum advance £5,000

Penny saysPenny says…
"Another product for borrowers with only a 5% deposit, Leeds Building Society's five-year fixed mortgage offers a market-leading rate of 5.69%.

"Borrowers will benefit from a very low fee and generous incentive package that includes free valuation fees."

Disclaimer:
Your home may be repossessed if you do not keep up with repayments on your mortgage.Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

Information & Rates correct as at: 06/09/2013

What next?

First time on the property ladder? Compare the best available first time buyer mortgages

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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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