Mortgage rates fall to less than 4% for first time buyers

Potential home buyers and first time home buyers are getting some help on the market as now is the best time to buy a home for a first time buyer. For the first time since the credit crunch back in 2007 mortgage rates have dropped under 4% for first time home buyers.

With the New Year came plenty of rate offers for those who can only afford a 10% deposit, many of which were under four percent. Chelsea Building Society, Marsden Building Society, and Yorkshire Building Society are all offering great rates to entice first time home buyers in.

Marsden Building Society is offering a 3.99% mortgage rate that is tied to a two year fixed mortgage for borrowers that only want to put 10% down on their home purchase. For a typical £150,000 home loan that will span over 25 years, monthly repayments will cost about £790 making it affordable for most budding home owners. There is an attaché fee of £1098 to also factor into the equation.

Yorkshire also is offering a two year fixed that comes in at 3.79% per month which averages out to be about £774 per month for the average home mortgage. There is also a £1125 attached to it. For those who do not want to pay the upfront fees, Yorkshire is also offering a 4.4% fee that leaves repayments at about £795 per month with an attached £625 fee. Buyers of this deal also receive £500 cash back leaving the upfront costs to be about £125.

First time buyers that can only afford to make a 5% deposit are also benefiting from lower mortgage rates with a new deal from Barclays that offers them the chance to take a Family Springboard mortgage at 4.69% making the average loan payment about £850.