The Best First Time Buyer Mortgages
The amount of low deposit mortgage deals has reached the highest level for three years, helping struggling first time buyers onto the property ladder.
Read more about how many are available here: /mortgage-rates-for-first-time-buyers-are-at-a-three-year-low/.
But prospective buyers should remember to look at the fees as well as the rates, as low rates often come with high fees. Compare the whole cost of the loan.
Take a look at the best rates:
5% deposit
Two years
Chelsea Building Society has the lowest rate for a 5% deposit, at 3.99% with a large £1,675 fee.
A 25-year £150,000 mortgage would cost £790 a month and £20,657 over the two years.
You could save money using Post Office Money’s Help to Buy mortgage. This deal is fee-free at 4.29%. On the same mortgage, monthly repayments would be slightly higher at £815, but over two years you would pay less, at £19,583.
Five years
Chelsea Building Society has a longer-term low deposit mortgage with a 4.69% rate and £1,675 fee.
The same mortgage would cost £850 a month and £52,675 over the five years.
But a slightly higher rate could save you money, due to lower fees.
The Best First Time Buyer Mortgages
Look at the HSBC’s Help to Buy five-year fix of 4.89% with a £199 fee. The same mortgage would cost £867 per month and £52,236 overall.
10% deposit
Two years
Post Office Money has a two-year fix at 2.59% with a £1,495 fee. This is the lowest rate for a 10% deposit.
A 25-year £150,000 mortgage on this rate would cost £679 a month and £17,808 over the term.
But if you pay a slightly higher rate you could save on a lower fee.
Yorkshire Building Society has a 2.64% rate with a £975 fee. The same mortgage would cost £683 per month, but is £428 cheaper overall than Post Office Money’s offer, at £17,380.
Five years
Post Office Money has a 3.69% rate with a £1,495 fee. The same mortgage costs £766 a month and £47,473 over the five-year term.
Leek United offers a 3.59% deal with a £999 fee. The mortgage would cost £758 a month and £46,490 over five years.
15% deposit
Two years
Post Office Money has a 1.99% rate with a fee of £1,495. The same mortgage costs £635 a month and £16,736 over the two years.
However, Yorkshire Building Society has a 2.04% rate on offer with a £975 fee. This mortgage would cost £638 per month and £16,303 over the term, £433 cheaper than Post Office Money.
Five years
The lowest five-year deal for a 15% deposit is from Chelsea Building Society, which offers a 3.14% rate for a £1,675 fee.
A 25-year £150,000 mortgage would cost £722 per month and £45,012 over five years.
The same rate is found at Leeds United, but for a £999 fee. This would make this mortgage £2,001 cheaper than Chelsea’s.
20% deposit
Two years
If you can raise a 20% deposit, rates will drop below 2%.
Newcastle Building Society has a competitive rate of 1.65% with a £1,299 fee. The same mortgage would cost £610 per month and £15,951 over the two-year period.
Five years
Leeds Building Society offers a 2.64% rate with a £1,999 fee. The same mortgage costs £683 a month and £43,011 overall.
Nottingham Building Society has a 2.65% rate with a £1,499 fee. A slightly higher rate but lower fee puts the repayments at £684 a month but a lower five-year cost of £42,557, saving £454.