First Time Buyer rates fall to three-year low

The number of first time buyer products available is continuing to increase, while mortgage rates are at their lowest levels in three years, according to research by MoneySuperMarket.

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%.

With the average loan to value required for first time buyers remaining flat over the last three years (79% compared to 78% in April 2012), those looking to get their first foot on the ladder would need to find a deposit of £31,500 on a £150,000 property. However, the number of 95% LTV mortgages available has increased significantly over the last three years, with 170 mortgage deals currently on the market available to those with a 5% deposit, an increase of 448% since 2012 when only 31 products were available. In addition, average rates have decreased by 1.04 percentage points to 4.72% on average.

Source: Financial Reoprter