We need more low mortgage rate products say first time buyers.

First time property buyers believe that lenders should launch more low mortgage rate products.

Buying a property was once relatively easy, with mortgage providers falling over themselves to offer first time buyers low mortgage rate deals. As the credit crisis took hold and banks crashed, lenders first time buyer criteria tightened.

Lending criteria was tightened to such an extent, that for a period of time it was virtually impossible for hopeful property buyers to source a cheap mortgage deal that didn’t call for a minimum 20 per cent deposit.

The last few months have seen an increase in the number of lenders willing to offer first timers higher loan to value products. Low deposit deals are once again offering a helping hand those with smaller deposits.

Mortgage providers genuinely seem to want to help first time buyers. New products have been launched specifically targeting the first time sector. There are now various lenders offering deals for smaller deposit levels  with lower arrangement fees. This may go a long way towards promoting increased first time buyer activity.

The government has also launched the well publicized NewBuy mortgage guarantee scheme with lenders offering deals at 95 per cent LTV.

For those who want to purchase property, Government and mortgage providers incentives are great news. However some feel that this is not enough and more low mortgage rate products are needed.

Lenders rates for first time buyers are cheap historically speaking, but not as competitive as those offered to buyers with larger deposits. Lenders defend this saying that the risk lending to first time buyers with low deposits is greater, therefore the rates offered must reflect this.

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