04 Nov 90% Mortgage Rates Improving for London’s First Time Buyers
After two years of banks of miserly funding for first time buyers, rates have dropped recently to seemingly more competitive levels.
The days of requiring a 20% deposit even before a bank would talk to you are slowly disappearing.
Barclays (Woolwich) this week launched a 90%, 3yr fixed at 4.99%, with no arrangement fees. (Overall Cost for comparison 4.3%APR.) Not only is the rate good – sub 5% really is a new barrier broken, but also the arrangement fee helps. (Although really a first time buyer could be helped in different and more innovative ways than this).
So availability has grown and there are now over 200 mortgages at 90% loan to value. This really does represent some much wanted competition in this market.
Back in 2010 mortgage brokers report that the average 90% rate from the whole of the market was 5.87%.
This extra serious competition can only be good for the market and a much needed helping hand for London’s first-time buyers.