FIRST TIME BUYERS HOLDING HANDS

By Alain Amos on

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Mortgage industry favouring first time buyers

It’s never been easier for first time buyers to get a mortgage!

Data from across the industry is pointing to first-time buyers being in the driving seat when it comes to securing the right mortgage deals.

The 95% mortgage scheme means deposits as low as 5% are now accepted by the majority of lenders as of April 2021. According to Which, there are now some ‘189 fixed-rate 95% deals now available, compared to just five at the start of March’.

This boost for first-time buyers, whose first home might have otherwise been out of reach, comes at a perfect time, with the stamp duty holiday ending and a shortage of housing stock has made moving an impossibility for those already on the ladder. First-time buyers no longer need to raise even a 10% deposit or Stamp Duty payments.

Alain Amos, Managing Director of Mortgage Decisions, shared his opinion with us: ‘Just a few months ago, a 95% mortgage would have been unheard of, Not only do we now have many products offering just that, but we’re now seeing interest rates under 1% too.’

‘First-time buyers are now able to look forward to their first foray into their home with the confidence that a low-deposit, fixed-rate mortgage is affordable and makes sound financial sense.’

For example, if you are a first time buyer here are some possible mortgage repayments:

  1. A £200,000 property with a 90% mortgage over 30 years on a 1.99% deal would cost £664.42 per month.*
  2. A £300,000 property with a 95% mortgage over 30 years on a 2.95% deal would cost £1193.90 per month.*
  3. A £400,000 property using Help to Buy with a 25% deposit over 30 years on a 1.14% deal would cost £1082.77 per month.*

Or use our mortgage calculator to find out your options.

If you’d like to know more about how the figures add up for your first move, click here. Or alternatively, call one of our friendly advisers on 03454 500 200.

With mortgage brokers in Winchester, Southampton, Farnham, Bishops Waltham, Alton, Chandlers Ford, Alresford, Romsey and Park Gate, you are never too far from mortgage advice.

*All are subject to a fee of £999, which can be added to a mortgage but is not included in the above illustrations.

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Alain Amos
Alain Amos, CeMAP CeFA CeSRE, has a wealth of financial services experience spanning more than 25 years, time spent with Countrywide and Charters. Former Divisional Director at Countrywide, Alain is a true leader and expert within the financial services sector.
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Amazing experience!!! I can't thank Jack and Russell enough for all they have done!!! Kept informed every step and felt very supported by them thank you!!

  • 5 star review on TrustPilotKerry S

I would recommend using Mortgage Decisions as they made the process of choosing my first mortgage so easy to understand . They were very knowledgeable on all the products available ,but mostly they were prompt . Thank you in-particular to Toby and Louis.

  • 5 star review on TrustPilotLindsay B

As a first time buyer, I was in the dark on how the process worked but having the support Beccy and Mark throughout made our journey a lot easier. Both friendly, approachable and knowledgeable a broker. I would recommend.

  • 5 star review on TrustPilotJonathan P

Excellent service with friendly staff who help you every step of the way. Russell and Max have been fantastic, professional and understanding throughout the process. Thoroughly recommend!

  • 5 star review on TrustPilotTimi O

Chawley and Amber have both been extremely helpful and accommodating throughout all stages of the process. I would highly recommend them to fellow first time buyers, as well as anyone needing mortgage advice. Thank you both!

  • 5 star review on TrustPilotAlex T