First Time UK Buyers and Homeowners getting Lower Interest Rates
Figures revealed by The Bank of England show that new homeowners and first time buyers can now receive the lowest interest rates in the last six years! If you are some of the hundreds of people in the UK trying to get on the property ladder, you can now look forward to the cheapest interest rate levels in fixed-rate home loans for six years. The Chelsea Building Society, Co-Operative Bank and Northern Rock have all revealed competitive deals.
There was a fall in the average cost of a 5 year fixed rate mortgage, falling to 5.49% from 5.56% the previous month. As well as this, on average a 2 year fixed-rate deal has fallen to 3.88% last month, the lowest rate since summer 2003.
Due to lenders competing to attract good-quality borrowers, interest rates have fallen. This should encourage existing customers to remortgage their property.
New UK Homeowners and First Time Buyers
The Mortgage Works is an innovative new range of guarantor home loans from part of the Nationwide Building Society group.
There are schemes that relieve some stress on first time buyers and new homeowners. One of these is to allow parents or relatives to be financial responsible for a proportion of a borrower’s mortgage. This will remove the risk of backing the entire loan. It requires the applicant to be able to afford at least 70% of the repayments on there loan, while the guarantor must be able to make up the remaining 30%. There is also a 10% cushion.
Halifax has taken a different approach, getting rid of the guarantor deals, and promoting another approach. Their “Lend a Hand” deal which allows first time buyers to borrow up to 95% of the value of a property with the backing of a parent or relatives savings is due to very strong demand for mortgages in recent times. This approach provides a different kind of service for borrowers.
The schemes, like the ones above, have allowed first time buyers a choice in how they could obtain a mortgage for their new property
A new homeowner or first time buyer may choose a shared equity scheme that can help when buying an apartment or house. The Hub, a property development in Manchester provides a shared equity scheme, where you can buy a studio, 1 bed, 2 bed or 3 bed apartments.
Want to find out more about Manchester apartments for sale, then contact Sinead Jones at The Hub Manchester for more information.
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