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Research by the Moneyfacts mortgage team this week has highlighted a trend of cheaper fixed rate deals for the first-time buyer.
Whilst there have been rate reductions in other mortgage product areas, it will be welcome news for those looking to purchase their first home to see that they have not been overlooked, and that they are still an important part of the mortgage market.
Rachel McKay from the Moneyfacts.co.uk mortgage team comments: "These rate reductions may indicate that lenders are now more comfortable with the fact that house values have levelled and the fear of negative equity for higher loan to value (LTV) advances has reduced."
"These deals also come without the up front incentives of insurances and cash backs which can often mean expensive tie-ins to the lender."
"Fixed rates are an option that will give first-time buyers some much needed peace of mind, with fixed repayments making it easier for them to budget, a prime concern for all advisers and first-time borrowers alike."
"The reduction in these interest rates combined with house prices slowing and the government talking of new FTB initiatives may mean there’s a glimmer of light at the end of the tunnel for those looking to get onto the housing ladder."
|
Lender |
FTB fixed rate reduction |
LTV |
Date changed |
|
Clydesdale |
4.59% from 5.09% |
90% |
23/6/2005 |
| |
4.99% from 5.79% |
95% |
23/6/2005 |
|
Woolwich |
4.89% from 5.09% |
95% |
9/6/2005 |
|
C & G |
4.79% from 4.99% |
95% |
15/6/2005 |
|
Yorkshire Bank |
4.59% from 5.09% |
90% |
23/6/2005 |
| |
4.99% from 5.79% |
95% |
23/6/2005 |
|
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