First-time buyer mortgage rates getting cheaper

by Aaron Strutt

Nov 15 2021

Mortgage lenders have been reducing the cost of their first-time buyer rates while increasing the price of their cheapest rates.

Many lenders pulled their low deposit mortgages when the pandemic hit, while the lenders that reminded in the market significantly increased their prices. Thankfully, banks and building societies have returned, and in many cases, they are offering cheaper first-time buyer rates than before the pandemic hit.

Accord Mortgages recently reduced the price of its 10% deposit rates by up to 0.6%, while Halifax improved its two and five-year first-time buyer rates by 0.25%. Earlier this week Platform lowered its low deposit rates by 0.2%.

If you are a first-time buyer looking to get on the property ladder, there is a good choice for 5%, 10%, 15% and 20% deposit rates. Many of the rates are available well below 2% and have £999 arrangement fees. 

Nationwide of Intermediaries has one of the most competitively priced 10% deposit two-year fixes for mortgages between £275,000 and £500,000. It is priced at 1.69% and has a £1,499 arrangement fee. After the fixed rate, it reverts to the lenders 3.59% standard variable rate, and the APRC is 3.4%. The society also offers up to 5.5 times salary to first-time buyers earning over £31,000.

Accord for Intermediaries has one of the most competitively priced 10% deposit five-year fixes for mortgages up to £500,000. It is priced at 2.39% and has a £495 arrangement fee. After the fixed-rate, it reverts to the lenders 4.49% standard variable rate, and the APRC is 2.39%.

Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage enquiry or book a consultation