Are mortgage rates on a 5 year fixed term competitive for first-time buyers?

Are lenders offerings for mortgage rates on a 5 year fixed term at 90 % loan to value competitive for first time buyers?

Many lenders are now introducing 90 % loan to value deals aimed at first time buyers but are any of the first-timer buyer mortgage rates over a 5 year fixed term truly great. At Deal Direct we can answer this question by searching the 'whole of market' on your behalf for the best rate deal.

One lender offering a 5 year fix to first-time buyers is the HSBC, they advise that around £3 billion will be set aside specifically for first-time buyers this year. To back up this statement the lender has launched a range of 90 % loan to value mortgages.

They offer a standard fee free product with a rate of 5.29 % and while the lender does not charge a booking fee an early repayment fee will be charged. They also offer an option at 4.89 % which comes with a £499 fee and once again an early repayment charge will be applied.

As the BOE base rate is predicted by economists to remain low until 2015, a 5 year fixed option may be a good idea for first-timers. However, where early repayment charges apply you will need to be sure that either you stay in your newly purchased property for 5 years or you can port your mortgage to a new property.

First-time buyers with no experience in the mortgage market can benefit from impartial, accurate and up to date advice. Here at Deal Direct we are experienced at finding the best mortgage rates over a 5 year fixed term for first time buyers. Many lenders now offer such products and our skilled brokers can search for the very best deals available.

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