Mortgage rates are falling as lenders fight for first time home buyers. This is particularly demonstrated by the falling rates for buyers with small down payments. The difference in rate between a ten percent down mortgage and a five percent down mortgage is now at a historic low. This is because first time home buyers are viewed as the foundation of the mortgage industry. This is good news for people trying to buy their first home, although they will still have to meet the affordability standards.
Key Takeaways:
- The two-year fixed rate mortgage for borrowers with a five percent deposit and for borrowers with a ten percent deposit is at its lowest in six years.
- Although recent reports show that uncertainties with regards to Brexit are affecting the market and rates with low deposits are risky, mortgagors are offering them.
- Moneyfacts notes that there is healthy competition in the market that is why there is a gap in the prices of fixed rate mortgages.
“A mortgage price war to attract first-time buyers with deposits as low as 5 per cent is intensifying, with providers slashing their rates, analysis has found.”