The Lowest First-Time Buyer Rates Available Today | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 29/07/2020

First-time buyers have faced a challenging mortgage market over the last few months. Between 1 March and 1 April, 1,193 deals available to first-time buyers were withdrawn from the market, seeing the number fall from 2,681 to 1,488. By the 1 May, this had fallen further to 1,163. Although there was a slight pick up during June and July, with 1,474 deals available on the 1 July, the market still remains challenging for first-time buyers, and since the start of the month, the number of deals has dropped again, with 1,363 deals available today.

There are schemes available to first-time buyers struggling to save for a housing deposit, which we highlighted in our previous article Help available for first-time buyers looking to get onto the housing ladder. As well as this, first-time buyers able to save for longer, or who are fortunate to have family who can help boost their savings, will find more options available if they have a 15% deposit enabling them to consider an 85% loan-to-value (LTV) deal.

While the market remains challenging for first-time buyers, there are still some good deals available for those with a 10% or 5% deposit. Below, we have highlighted the lowest rates available at 90% and 95% LTV that are available in the chart today.

However, the lowest rate is not always the best deal available and borrowers should consider a range of factors such as product fees, incentives and flexible features when choosing a mortgage product. First-time buyers looking to get the lowest rate possible should act quickly, as we are already starting to see two year fixed rates at all LTVs rising.

The lowest two year fixed 90% LTV rates

Provider Rate Initial rate period Product fee
HSBC 2.24% fixed Two years £999
Nationwide Building Society 2.49% fixed Two years £999
HSBC 2.54% fixed Two years £0

 

First-time buyers able to save a 10% deposit, and therefore able to get a 90% LTV deal, will find that HSBC currently offers the lowest rate in the two year fixed first-time buyer chart. HSBC offers 2.24% (3.4% APRC) fixed until 30 September 2022, which then reverts to 3.54% variable. This deal charges £999 in product fees and comes with the incentive of free valuation.

The second-lowest two year fixed rate at 90% LTV comes from Nationwide Building Society, which offers 2.49% (3.5% APRC) fixed for two year years, after which it reverts to 3.59% variable. This deal charges £999 in product fees and comes with the incentives of free valuation and £500 cashback.

HSBC also has the third-lowest rate in the two year fixed chart at 90% LTV today. It offers 2.54% (3.4% APRC) fixed until 30 September 2022 and then reverts to 3.54% variable. This deal charges no product fees and comes with the incentive of free valuation.

The lowest five year fixed 90% LTV rates

Provider Rate Initial rate period Product fee
HSBC 2.56% fixed Five years £1,499
HSBC 2.59% fixed Five years £999
HSBC 2.79% fixed Five years £0

 

The lowest three rates in the five year fixed first-time buyer chart at 90% LTV are all available from HSBC. The lowest rate overall in this chart is 2.56% (3.3% APRC) fixed until 30 September 2025, which then reverts to 3.54% variable. This deal has a number of opening restrictions, including needing a minimum income of £75,000. It charges £1,499 in product fees and comes with the incentive of free valuation.

The next-lowest rate is HSBC’s 2.59% (3.2% APRC) fixed until 30 September 2025, after which it reverts to 3.54% variable. This deal charges £999 in product fees and comes with the incentive of free valuation.

HSBC also had the third-lowest rate of 2.79% (3.3% APRC) fixed until 30 September 2025 and then reverts to 3.54%. This deal does not charge any product fees and comes with the incentive of free valuation.

The lowest two year fixed 95% LTV rates

Provider Rate Initial rate period Product fee
Furness Building Society 3.29% fixed Two years £0
Teachers Building Society 3.94% fixed Two years £199

 

There are only two deals available in the first-time buyer two year fixed chart at a 95% LTV. Furness Building Society offers the lowest rate of 3.29% (4.9% APRC) fixed for two years, which then reverts to 5.14% variable. This deal does not charge any product fees and comes with the incentive of free valuation up to a maximum of £665.

The only other two year fixed deal available at a 95% LTV comes from Teachers Building Society, which offers a rate of 3.94% (5.1% APRC) fixed until 14 July 2022 and then reverts to 5.24% variable. This deal is only available to teaching professionals. It charges £199 in product fees and comes with the incentive of free valuation up to a maximum of £800,000 of the purchase price and £100 cashback for those who are members of the National Education Union.

The lowest five year fixed 95% LTV rates

Provider Rate Initial rate period Product fee
Barclays Mortgage 2.85% fixed Five years £0
Family Building Society 2.99% fixed Five years £599
Saffron Building Society 3.47% fixed Five years £180

 

There are more deals available for first-time buyers looking for a deal at 95% LTV in the five year fixed rate chart. Barclays Mortgage has the lowest rate in this chart of 2.85% (2.7% APRC) fixed until 31 October 2025, which then reverts to 2.59% variable. This deal has restrictions, requiring a third party to deposit 10% of the property value in a Helpful Start Account. It does not charge any product fees and comes with the incentive of free valuation for properties valued up to a maximum of £2 million.

The next-lowest rate came from Family Building Society, which offers 2.99% (3.9% APRC) fixed until 30 November 2025, after which it reverts to 4.39% variable. This deal requires additional security from a family member by way of savings or a charge over property. It charges £599 in product fees and comes with the incentives of free valuation for properties valued up to a maximum of £500,000 and £250 cashback.

Saffron Building Society offers the third-lowest rate of 3.47% (4.1% APRC) fixed until 30 November 2025 and then reverts to 4.39% variable. This deal allows a family member to be a supporting borrower without being named on the property deeds. It charges £180 in product fees and comes with the incentive of free valuation.

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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