First-time buyers with small deposits get the pick of the deals
There’s good news for first-time buyers with small deposits as mortgage interest rates in this market have plummeted to a record low while choices have widened.
Data released today has revealed two-year fixed-rate deals for borrowers with 5% deposits who therefore need a 95% loan-to-value (LTV) mortgage are averaging at 3.54% – a sharp decline on the 6.52% typical rate 10 years ago. Meanwhile, homebuyers with a 10% deposit, who require a loan of 90% of their property’s value, are benefiting from having the pick of the fixed-rate bunch. According to Moneyfacts.co.uk, which has compiled the data, the number of fixed-rate deals for these borrowers is at its highest on record with more than 650 deals available, compared to just over 100 in December 2008. Interest rates on 90% LTV mortgages have also plunged from 6.5% in 2008 to 2.7% today.
10/12/2018 | source: https://www.whatmortgage.co.uk/news/fir ... ick-deals/
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