{"id":20708,"date":"2018-08-31T09:45:50","date_gmt":"2018-08-31T08:45:50","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=20708"},"modified":"2023-10-10T10:01:06","modified_gmt":"2023-10-10T09:01:06","slug":"first-time-buyers-to-benefit-from-reduced-rate-95-ltv-mortgage-deals","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/08\/31\/first-time-buyers-to-benefit-from-reduced-rate-95-ltv-mortgage-deals\/","title":{"rendered":"First-time buyers to benefit from reduced rate 95% LTV mortgage deals"},"content":{"rendered":"

Despite the base rate increase to 0.75% less than a month ago, lenders keen on attracting first-time buyers are continuing to slice away at their rates.<\/strong><\/p>\n

For borrowers with just a 5% deposit, the market is offering a range of competitive deals. With first-time buyers<\/a> facing an average purchase price of \u00a3208,741, decreasing rates on a 95% loan-to-value (LTV) could make a big difference.<\/p>\n

Fixed rates lower than last year<\/h4>\n

According to Moneyfacts.co.uk, the average five-year fixed rate with a 5% deposit<\/a> is now 4.30%, compared with 4.51% a year ago. Some lenders are making even bigger cuts to stand out<\/a> from the crowd; Sainsbury\u2019s Bank currently has a five-year fixed rate at a low 3.29%, with \u00a3500 cashback.<\/p>\n

Last year, two-year fixes were sitting at 4.18%, but are now averaging 3.95%, and again with some lenders making further reductions. Nottingham Building Society\u2019s cheapest fixed-rate is 2.99% with a \u00a3999 fee, and Yorkshire Building Society currently has a deal at 2.87% with a \u00a3495 fee.<\/p>\n

Mainstream lenders continue the trend<\/h4>\n

During August, Nationwide, HSBC, M&S Bank and Barclays all announced lower rates<\/a> for 95% LTV borrowing. Barclays is offering a five-year fix at 95% LTV at a rate of 4.04% with a product fee of \u00a3499, as well as an option with no fee at a rate of 4.14%.<\/p>\n

M&S Bank extended its LTV on three new products, two and five-year fixed rates plus a two-year tracker mortgage<\/a> and are offering \u00a31,000 cashback to first-home buyers. HSBC UK refreshed its mortgage range by reducing its 95% LTV three and five-year fixed rates by 0.30% to 3.44% and 3.59% respectively, both with no fee, and its 95% LTV two-year fix by 0.15% to 3.34% with no fee. Nationwide reduced its two-year fixed rates by 0.40% to start at 3.24% with a \u00a3999 fee and 3.64% with no fee. 95% LTV five-year fixed rates now start at 4.14% with a \u00a3999 fee and 4.34% fee-free<\/a>.<\/p>\n

Lenders offering 95% LTV mortgage deals at increasingly competitive rates will fuel the first-time market<\/a> even further, as the availability of low rates continues to make buying more financially attractive than renting<\/a> the number of first-time buyers will continue to grow.<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the base rate increase to 0.75% less than a month ago, lenders keen on attracting first-time buyers are continuing to slice away at their rates. For borrowers with just a 5% deposit, the market is offering a range of competitive deals. With first-time buyers facing an average purchase price of \u00a3208,741, decreasing rates on… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":11258,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,26],"tags":[73,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/20708"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=20708"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/20708\/revisions"}],"predecessor-version":[{"id":6097373,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/20708\/revisions\/6097373"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/11258"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=20708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=20708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=20708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}