First-time buyer market in strong shape for spring
Buyers who can only amass a 5% deposit will have more deals to choose from this spring than in recent years, according to Moneyfacts.
The financial information provider said that, despite the closure of the Help to Buy Mortgage Guarantee scheme, the first-time buyer mortgage market is robust and has the potential to keep growing.
Moneyfacts noted that, as we enter one of the year’s peak buying periods, the number of mortgage products available at up to 95% of the property’s value is 276, up from 253 a year ago and just 59 in 2012.
Plus those borrowers with a 5% deposit will find average rates have fallen over the last five years.
Finance expert Rachel Springall, said: “The number of deals has rocketed to 276 from 53 different lenders, including most of the largest high street banks.
“It’s not just the available choice that will benefit first-time buyers, there’s also a huge reduction in the cost of a mortgage, with two and five-year fixed rates for those with a 5% deposit falling from 5.93% and 5.89% to 3.92% and 4.43% respectively over the last five years.
“Based on the average five-year fixed rate, that’s a difference of £7,715.40 in terms of repayments during the first five years of a typical mortgage.”