03.10.11 by Andrew Montlake
Products For 1st Time Buyers Do Exist!
The popular belief amongst the general public and media at the moment is that unless you have a massive deposit, around 40% or so, you will struggle to get a mortgage. However, this is actually far from the truth and so we thought we would highlight the fact that over the past few weeks more and more products are available with smaller deposits.
Whilst these products may seem more expensive given a very low Bank Base Rate, in historical terms these rates are very competitive.
With a 15% deposit you can obtain a Tracker Rate starting at 3.19% for 2 years, (5.80% APR) or a 2 year fixed rate at 3.34%, (5.80% APR), through Accord. There is also our friends at Nat West, who, with a Tracker Rate of 3.49%, (4.10% APR), offer 4.99 times salary multiples, (subject to affordability and credit score), on loans up to £1.5m.
With just a 10% deposit, Northern Rock continue to support the 1st Time Buyer with rates of 4.95% fixed for 2 years and no arrangement fees, (4.80% APR), whilst Halifax will lend at 5.64%, (4.40% APR), fixed up to a loan amount of £750,000.
Even the Post Office are getting in on it with the release of a 5 year fixed at 4.99%, (4.60% APR).
Finally, at just a 5% deposit the wonderful Saffron Building Society will lend up to a maximum of £500,000 at a rate of 5.79% fixed until 30/04/2015 with just a £195 fee, (5.79% APR). There are other 95% schemes available for those who are able to use parents/family savings as well.
In other words, it is always worth a quick chat with a professional, independent adviser to check what is actually available before assuming that nothing is!
Have a great week.
Monty’s Mortgage Blog
The big news last week was the sudden planned withdrawal of the Funding for Lending Scheme from mortgage finance. If you recall this was one of the first Government incentives that allowed lenders to access cheaper funds from the Government providing they lent this out to borrowers.