First-Time Buyer Mortgages Increase Significantly


The number of 95% mortgages have increased by 37% in only one month. This particular type of mortgage is very popular with first time buyers. Because of the increase, borrowers can now choose from over 300 products for the first time since 2008.

The increase of 95% mortgages is highly unusual, with some lenders re-entering the market. They are aware that borrowers who are coming to the end of their mortgage could be tempted to take advantage of low rate offers with other lenders. Because of this, mortgage providers must remain competitive in order to maintain the interest of first time buyers.

On average, the two-year-fixed rate remains much lower than that at the beginning of the financial crisis. A two-year-fixed rate for a 95% mortgage has fallen for the past five, consecutive months to 4.02%.

Although the average remains above the record low seen in January 2017, potential first-time buyers are still being urged to enter the property market. Even if a first-time buyer only has a 5% deposit to buy their first home, they should still embark on buying their first home.

There are also reports that lower LTV mortgage numbers have decreased over the course of the past month, with exceptions of 90% and 75% deals.

Overall, first-time buyers shouldn’t remain complacent. Positive news about mortgages should be a motivator to act, especially since the market can be unpredictable. Base rate rises are predicted for the near future; with SWAP rates and the three-month LIBOR have also shown signs of increasing.

Essentially, borrowers should be considering their options now and act quickly in order to secure themselves the best possible deal and ultimately save significant sums in the long run.

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