New analysis from MoneySuperMarket has found that mortgage rates for first time buyers are at a three year low.
The comparison website revealed the number of overall mortgage products available to first time buyers is currently 2,776. Thanks, in part, to the Government’s Help to Buy scheme, this figure is double the number of products available in April 2012 when there were only 1,324 first time buyer products on the market. In addition, the average rate on first time buyer mortgages has dropped by one percentage point in the last three years to 3.26 per cent.
With the average loan to value (LTV) required for first time buyers remaining flat over the last three years (79 per cent compared to 78 per cent in April 2012) , those looking to get their first foot on the ladder would need to stump up a hefty deposit of £31,500 on a £150,000 property. However, a five per cent deposit on the same property would cost £7,500 and for those in that situation there is good news.
The number of 95 per cent LTV mortgages available has increased significantly over the last three years. Spurred by a the number of Help to Buy products available, there’s 170 mortgage deals currently on the market available to those with just a five per cent deposit, an increase of 448 per cent since 2012 when only 31 products available. In addition, average rates have decreased by 1.04 percentage points to 4.72 per cent on average.
