The leading two-year fixed mortgages for first-time buyers have seen a rate increase this week, with Halifax offering the lowest rates for buyers with a 10% and 5% deposit.
While the lowest two-year fix with a maximum LTV of 90% charges a rate of 5.05%, the two-year fix with a 95% maximum LTV charges a higher rate of 5.20%. Both deals from Halifax charge a £999 arrangement fee and offer a Green Home cashback of £250 if your property has an Energy Efficiency rating of 81 or higher.
Alternatively, Leeds BS offers a two-year fix for those wanting to finance up to 90% of their property purchase that doesn’t charge any product fees at all. It charges a rate of 5.17% and offers a free valuation as an extra perk.
Borrowers with a 5% deposit can also find a two-year fix from TSB that doesn’t charge any arrangement fees. With a rate of 5.64%, this Moneyfacts Best Buy deal also offers a free valuation and £500 cashback.
Clydesdale Bank offers the lowest five-year fix with a maximum LTV of 90%. Charging a rate of 4.59% and a sizeable arrangement fee of £1,499, this deal is only available from intermediaries and doesn’t offer any extra incentives.
If you’d prefer a deal with a lower upfront cost and some extra incentives, HSBC offers a five-year fix for those with a 10% deposit at a rate of 4.71%. This deal charges a £999 booking fee and offers borrowers a free valuation and £500 cashback, which could help first-time buyers with some of the costs of moving into their new home.
First-time buyers wanting a five-year fixed rate mortgage with a maximum 95% LTV will once again find the lowest rate with Family Building Society at 4.79%. This deal is a family mortgage, which means the family of first-time buyers can help them get on the property ladder by using their own savings or property as security.
It charges a £599 completion fee and offers a free valuation for properties worth up to £500,000, as well as £250 cashback. This deal is available to first-time buyers in England and Wales (excluding the Scilly Isles).
Alternatively, Monmouthshire BS offers a five-year fix at 4.90% that can finance up to 95% LTV. It charges £649 in product fees and, despite offering no extra incentives, this deal features as a Moneyfacts Best Buy.