First-time buyers who have a small deposit may still be able to get onto the property ladder thanks to the support of two major lenders.
Virgin Money and Yorkshire Building Society have introduced low rate products for borrowers who have a 5% deposit. A two-year fixed rate product from the Yorkshire Building Society is available at 3.39%, the property market’s lowest rate deal, according to a report from MoneyFacts. Borrowers applying for this deal will also receive cashback of £500. Two-year fixed rate deals from Virgin Money have also been cut for those with a 5% deposit, charging 4.09%. Cashback is also available on this deal, at £300.
This latest boost for first-time buyers comes just after the Chancellor confirmed that stamp duty would be cut for first-time buyers on homes up to £300,000. The Yorkshire Building Society’s mortgage manager, Janice Barber, stated that they hoped the new lower rates added to their mortgage range would further assist first-time buyers.
Other building societies to also offer low-rate deals for buyers with a smaller deposit include the Nottingham Building Society and Ipswich Building Society. The Family Building Society offers a five-year fixed rate deal at just 2.89%. According to the data from MoneyFacts, the average rate for first time buyers with deposits of 5 or 10% have remained relatively unchanged since the interest rates increased in November.
Mortgage advisors gain the information they require to help first-time buyers by studying on CeMAP courses, and they can help find the most suitable mortgage available from lenders.
