{"id":22248,"date":"2018-12-06T11:43:04","date_gmt":"2018-12-06T11:43:04","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=22248"},"modified":"2018-12-06T11:43:04","modified_gmt":"2018-12-06T11:43:04","slug":"record-low-mortgage-rates-for-first-time-buyers","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/2018\/12\/06\/record-low-mortgage-rates-for-first-time-buyers\/","title":{"rendered":"Record low mortgage rates for first-time buyers"},"content":{"rendered":"

Mortgage rates for first-time buyers are at their lowest level since mortgage records began in 1995, according to the Bank of England.<\/strong><\/p>\n

Latest figures show that the interest rates on two and five-year deals have fallen to a 23-year low. Uncertainty over Brexit<\/a> and fierce competition between lenders in the first-time buyer<\/a> market is undoubtedly behind the low rates \u00a0<\/strong><\/p>\n

As a result, first time buyer levels have seen an upturn in recent months. The latest index report shows that first-time buyers had a larger share of mortgage approvals in October (24.6% of all loans) than in September (24.2%).<\/p>\n

Market analysis by UK Finance shows that in Q3 of 2018 first time buyer levels have increased in Scotland<\/a> and Northern Ireland<\/a>, and in London<\/a> first-time buyer levels have hit their highest rate since 2015.<\/p>\n

Average rates dropped in October<\/h4>\n

The average rate in 2017 for a two-year fixed was 4.02% and for a five-year fixed 4.71%. In September this year, these had dropped to 3.39% and 3.95% respectively. However, buyers seeking a 95% loan to value (LTV) mortgage<\/a> in October could secure a two-year mortgage with an interest rate of 3.33% or a five-year fixed at 3.89%.<\/p>\n

Rates could continue falling into 2019<\/h4>\n

While lower LTV mortgages have limited scope for rate reductions, the more expensive low deposit mortgages enable lenders to cut rates to maintain a competitive edge in the market and attract new borrowers.<\/p>\n

Rachel Springall, finance expert at Moneyfacts.co.uk, said,<\/p>\n

\u201cThe cost of mortgages does appear to be on the rise as a whole, fuelled by the base rate rise in August, but as we have seen in the last month, lenders are still heavily invested in attracting new borrower.\u201d<\/p><\/blockquote>\n

Shaun Church, from mortgage broker Private Finance, expects rates to fall even further for borrowers with 5% deposits. \u201cI don\u2019t see why we shouldn\u2019t see these drop under 3%, because there is a little bit more meat on the bone with these deals.\u201d<\/p>\n

The market for small deposit borrowers is looking particularly fertile, with no signs of abating at present, and will continue to do so as lenders cut rates to encourage first-time buyers to get on the property ladder while they can.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mortgage rates for first-time buyers are at their lowest level since mortgage records began in 1995, according to the Bank of England. Latest figures show that the interest rates on two and five-year deals have fallen to a 23-year low. Uncertainty over Brexit and fierce competition between lenders in the first-time buyer market is undoubtedly… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":15923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[73,108,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/22248"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=22248"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/22248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/15923"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=22248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=22248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=22248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}