Mortgage bulletin - this week's best deals for first-time buyers

Posted 2 December 2014

New government figures show that 71,000 people have been helped by the Help to Buy and NewBuy schemes, including 54,000 first-time buyers. These schemes offer mortgage guarantees and equity loans, and the vast majority of buyers using them are outside of London.

For buyers with a 5% deposit, there are a number of deals available, with varying discounted rates and differing revert rates (the rate you pay after the fixed-rate period). There are also widely differing fees, so it pays to shop around.

Nationwide

Nationwide has a range of Save to Buy mortgages at 95% loan-to-value (LTV) for first-time buyers with a Nationwide Save to Buy savings account. Rates include a two-year fixed-rate at 4.79% with fees of £499 and 5.19% with no fees, a three-year fixed-rate at 5.19% with fees of £499 and 5.49% with no fees, and a five-year fixed-rate at 5.39% with £499 fee or 5.59% with no fee. All of these products offer up to £1,000 cashback on completion, depending on the borrower's Save to Buy account balance, and revert to the Nationwide's standard variable rate of 3.99% after the fixed–rate period.

Clydesdale Bank

Clydesdale Bank is offering a three-year fixed-rate 95% LTV mortgage to qualifying first-time buyers with no arrangement fee. At a rate of 4.89%, the deal includes one free home valuation and, until 28 November, will give a cashback equivalent to one month's regular mortgage repayment up to £1,000 at mortgage drawdown on loans of £25,000 or more. The variable rate is currently 4.95%.

HSBC

HSBC has two products at 95% LTV available to those with or without an HSBC banking or savings account. Both are available on mortgages up to £400,000 and both come with no exit fee when you repay the loan after the fixed-rate period. The two-year fixed-rate special has a rate of 4.79% with a booking fee of £99, while the five-year fixed-rate special is currently 5.29%, again with a fee of £99. After the fixed term, the rate reverts to the lenders variable rate, currently 3.94%.

Halifax

Halifax has a first-time buyer Help to Buy mortgage guarantee product for qualifying Halifax current account holders at up to 95% LTV. The rates is 5.39% with a product fee of £495 or 5.59% with no fee, and loans are available up to £600,000. The Halifax homeowner Variable Rate after the fixed-term is currently 3.99%.

Santander

Meanwhile, Santander is launching its lowest-ever two-year fixed-rate remortgage at 1.84% at 60% LTV with a £995 fee. Santander has also launched three new deals for homebuyers and remortgagers at 80% LTV. Lenders can chose form a two-year fixed-rate at 2.29% a five-year fixed-rate at 3.44% and a two-year tracker at 2.04%. All of these mortgages come with Santander’s Homebuyer or Remortgage Solutions, offering a free valuation and £250 cashback for those buying a new home, and a free valuation and free legals or £250 cashback for those remortgaging.

In addition, Santander 1|2|3 Current Account customers who pay their monthly Santander mortgage payment by Direct Debit will receive 1% cashback on maximum monthly mortgage payments of £1,000. Miguel Sard, head of mortgages at Santander, says, “This is good news all round for customers, whether they are looking to remortgage or buy a new home. We are delighted to end the year by offering some of the lowest rates available in the market, and both customers and brokers should take advantage of these limited offer deals while they can.   

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