Good news for First time buyers seeking a 95% mortgage!
For the first time in a long time, there is hope for first time buyers who are seeking to pay a 5% deposit on a 95% mortgage! At no other time has so many options and deals been available to those seeking a 95% mortgage. This is despite the fact that the Government’s Help to Buy mortgage scheme ceased in January 2017. It only remains available for new build properties.
There are now many more mortgage lenders offering deals with current estimates showing that there are around 276 deals with 53 different lenders. There has also been a big reduction in the cost of a mortgage.
The rise and demand for these types of mortgages is contrary to the widely held belief that people are holding back as a result of rising house prices. This is partly due to the current low interest rates which mean that repayments are affordable. Recently, it was found that rates have averaged at 3.98% for a two year fixed term down from 4.26%. In the case of a 5 year fixed term the rate was reduced from 4.76% to 4.43%.
These low interest rates have also meant that the number of people seeking re-mortgages has also surged by about 20% over the last year according to The Council of Mortgage lenders.
All this has meant that the dream of owning your first home has come that much closer than ever before.
Buying your first home is a big step and that is where your Mortgage Adviser is important in providing you with all of the best options available to you and gaining the best deal for you. Obtaining their advice is invaluable and will mean that the whole process is hassle and stress free.