If you’re a first time buyer looking for a 5% deposit mortgage then you’re in luck. Rates have fallen dramatically for low deposit mortgages according to What Mortgage.
Research by moneyfacts.co.uk shows that rates on a 5% deposit mortgage are currently at 3.30%. This is compared to rates of 4.19% which were recorded in October 2017.
How will this 5% deposit mortgage rate help first time buyers?
These days most first time buyers struggle to save a large deposit. This is why the 5% deposit mortgage is so popular.
Previously, those looking to get a mortgage with a low deposit where subject to higher interest rates. This means that the monthly repayments were usually higher.
Now that rates are falling this should mean that mortgage repayments for first time buyers are a little lower.
5% deposit affordability is still strict
Whilst this is good news for those looking to get a mortgage with a low deposit, What Mortgage reports that affordability is still strict. First time buyers will still have to jump through several hoops to ensure they can afford a mortgage.
The best advice would be to speak to a mortgage broker to find out if you could be eligible to get a 5% deposit mortgage with a low rate. You can talk to our recommended mortgage broker free of charge by calling 0115 924 3304 or use the form below. He will be able to advise you either over the phone or during an appointment in person.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home.