Those looking to get a foot on the housing ladder may be tempted to act sooner rather than later.
Despite interest rates increasing, mortgages for first-time buyers have actually gotten cheaper overall. This is in part due to the increase in high Loan to Value (LTV) mortgages being made available, according to Defaqto. High LTV mortgages allow borrowers to place only a small amount of the property’s worth down as a deposit (sometimes as low as 5%), and borrow the remaining amount. This makes it easier for first-time buyers or those with little savings to purchase a house.
Lower Rates and Higher Competition
Defaqto has found that 95% LTV mortgage (with 5% deposits) interest rates have been falling. Certain rates and fees for first-time buyers have also been dropping for two, three and five year fixed rate mortgages. This, coupled with the fact there is more choice of products and lenders, has made it easier on first-time buyers when purchasing their first house.
For more on lower mortgages for first-time buyers, visit PropertyWire.