The Times - The phoney first-time buyer loans war
Banks, building societies and politicians are all promising first-time buyers the good life, with more low deposit schemes and better mortgage rates on offer than ever before. But is it all just grandstanding?
What rates are available?
Lenders are certainly making an effort to look interested in this sector of the market. The number of mortgages available to first-time buyers has grown in recent years and this week Tesco launched its first 95 per cent loan-to-value mortgages.
The Co-operative Bank has launched its lowest ever 90 per cent fixed-rate mortgage deal well below 3 per cent. Halifax is also launching a 1 per cent cash-back offer for all first-time buyers across its mortgage range, including Help to Buy, Affordable Housing and New Build, a move the lender says underlines its commitment to helping first-timers. “The mentality of the lenders has shifted and they are certainly concentrating on the first-time buyer market a lot more,” says Aaron Strutt, of Trinity Financial, a broker. “We have seen them lower rates, introduce cash-back incentives and, importantly, reduce the size of the deposit they ask for.”
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