First time buyer mortgages

Are you a first time buyer?

 

On the one hand, falling house prices have been good news for aspiring first time buyers. On the other, the credit crunch and the impact it has had on the other means millions of would-be homeowners are still struggling to get a foot on the property ladder. There are mortgage options available though...




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Mortgage Best Buys

Mortgage types explained
Our best buys supply the Daily & Sunday Times, Telegraph, Independent, Express, Mirror, Sun, What Mortgage & Your Mortgage

Remortgage

Mortgages suitable for those remortgaging, ranked on lowest payrate. Where a provider's logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed

Chelsea BS

 1.74% July 2015 £1545 5.2% APR 60%
Our opinion: FIXED – Chelsea BS are offering this market leading fixed rate at 1.74% until July 2015, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,545. A £130 processing fee also applies. An Early Repayment Charge is payable until 31/07/2015.

NatWest

0800 096 8772

 1.74% October 2015 £1995 4% APR 60%
Our opinion: FIXED – NatWest are offering this fixed rate at 1.74% until October 2015, the rate then reverts to the SVR, currently 4.0%, after the fixed period. A deposit of 40% is required and the arrangement fee is £1995. An Early Repayment Charge is payable until 31/10/2015.

Chelsea BS

 1.99% July 2016 £1545 4.9% APR 60%
Our opinion: FIXED – Chelsea BS are offering this fixed rate at 1.99% until July 2016, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,545. A £130 processing fee also applies. An Early Repayment Charge is payable until 31/07/2016.

HSBC

 2.49% August 2018 £1999 3.6% APR 60%
Our opinion: FIXED – HSBC are offering a 5 year fixed rate at 2.49% until August 2018, the rate then reverts to the SVR, currently 3.94%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,999. An Early Repayment Charge is payable until 31/08/2018.Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Cheltenham & Gloucester

 1.89% August 2015 £2094 3.9% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.39% above base rate for 2 years, giving a current pay rate of 1.89%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £2094 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015.

Lloyds TSB

 2.09% August 2015 £2094 3.9% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.59% above base rate for 2 years, giving a current pay rate of 2.09%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £2094 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015. Available for Remortgages only.

NatWest

0800 096 8772

 2.19% October 2015 £995 3.8% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.69% above base rate for 2 years, giving a current pay rate of 2.19%. The rate then reverts to the SVR, currently 4.0%, after the Tracker period. The fee is £995 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/10/2015.

Halifax

 2.19% August 2015 £995 3.8% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.69% above base rate for 2 years, giving a current pay rate of 2.19%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £995 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015. Available for Remortgages only.

HSBC

 1.75% 2 Years £1999 3.8% APR 60%
Our opinion: DISCOUNT – HSBC are offering this market leading Discount rate at 1.75% for 2 years, the rate then reverts to the SVR, currently 3.94%, after the Discount period. A deposit of 40% is required and the arrangement fee is £1,999. An Early Repayment Charge is payable for 2 years. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Skipton BS

 2.18% 2 Years £995 5.3% APR 60%
Our opinion: DISCOUNT – Skipton BS have released this 2 year discount at 2.18%, the rate then reverts to the Base Rate plus 4.99%, currently 5.49%, after the Discount period. The arrangement fee is £995 and you will require a 40% deposit. An early repayment charge applies for 2 years.

Fixed

Mortgages with a fixed rate for an initial term, ranked on lowest payrate. Where a provider's logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed

Chelsea BS

 1.74% July 2015 £1545 5.2% APR 60%
Our opinion: FIXED – Chelsea BS are offering this market leading fixed rate at 1.74% until July 2015, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,545. A £130 processing fee also applies. An Early Repayment Charge is payable until 31/07/2015.

NatWest

0800 096 8772

 1.74% October 2015 £1995 4% APR 60%
Our opinion: FIXED – NatWest are offering this fixed rate at 1.74% until October 2015, the rate then reverts to the SVR, currently 4.0%, after the fixed period. A deposit of 40% is required and the arrangement fee is £1995. An Early Repayment Charge is payable until 31/10/2015.

Yorkshire BS

 1.79% June 2015 £1345 4.5% APR 60%
Our opinion: FIXED – Yorkshire BS are offering this fixed rate at 1.79% until June 2015, the rate then reverts to the SVR, currently 4.99%, after the fixed period. A deposit of 40% is required and the arrangement fee is £1345. A £130 processing fee also applies. An Early Repayment Charge is payable until 30/06/2015.

first direct

 1.89% 2 Years £1999 3.6% APR 65%
Our opinion: FIXED – first direct are offering this fixed rate at 1.89% for 2 years, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. A deposit of 35% is required and the arrangement fee is £1999. An Early Repayment Charge is payable for 2 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Chelsea BS

 1.99% July 2016 £1545 4.9% APR 60%
Our opinion: FIXED – Chelsea BS are offering this fixed rate at 1.99% until July 2016, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,545. A £130 processing fee also applies. An Early Repayment Charge is payable until 31/07/2016.

first direct

 2.29% 3 Years £1999 3.5% APR 65%
Our opinion: FIXED – first direct are offering this fixed rate at 2.29% for 3 years, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. A deposit of 35% is required and the arrangement fee is £1999. An Early Repayment Charge is payable for 3 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Nationwide

 2.34% 3 Years £999 3.7% APR 60%
Our opinion: FIXED – Nationwide are offering this 3 year fixed rate at 2.34%, the rate then reverts to the SVR, currently 3.99%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £999. An Early Repayment Charge is payable for 3 years.

first direct

 2.49% 5 Years £1999 3.4% APR 65%
Our opinion: FIXED – first direct are offering this fixed rate at 2.49% for 5 years, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. A deposit of 35% is required and the arrangement fee is £1999. An Early Repayment Charge is payable for 5 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

HSBC

 2.49% August 2018 £1999 3.6% APR 60%
Our opinion: FIXED – HSBC are offering a 5 year fixed rate at 2.49% until August 2018, the rate then reverts to the SVR, currently 3.94%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £1,999. An Early Repayment Charge is payable until 31/08/2018.Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Santander

 3.94% July 2023 £995 4.3% APR 60%
Our opinion: FIXED – Santander are offering this low 10 Year Fixed rate at 3.94% until July 2023, the rate then reverts to the SVR, currently 4.74%, after the Fixed period. A deposit of 40% is required and the arrangement fee is £995. An Early Repayment Charge is payable until 02/07/2023.

Trackers & Variable

Mortgages where the rate either tracks the Bank of England base rate or lender base rate and mortgages that are discounts off the lenders SVR, ranked on lowest payrate. Where a providers logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed
Discount & Variable Mortgages

HSBC

 1.75% 2 Years £1999 3.8% APR 60%
Our opinion: DISCOUNT – HSBC are offering this market leading Discount rate at 1.75% for 2 years, the rate then reverts to the SVR, currently 3.94%, after the Discount period. A deposit of 40% is required and the arrangement fee is £1,999. An Early Repayment Charge is payable for 2 years. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Skipton BS

 2.18% 2 Years £995 5.3% APR 60%
Our opinion: DISCOUNT – Skipton BS have released this 2 year discount at 2.18%, the rate then reverts to the Base Rate plus 4.99%, currently 5.49%, after the Discount period. The arrangement fee is £995 and you will require a 40% deposit. An early repayment charge applies for 2 years.
Tracker Mortgages

Cheltenham & Gloucester

 1.89% August 2015 £2094 3.9% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.39% above base rate for 2 years, giving a current pay rate of 1.89%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £2094 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015.

Lloyds TSB

 2.09% August 2015 £2094 3.9% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.59% above base rate for 2 years, giving a current pay rate of 2.09%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £2094 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015. Available for Remortgages only.

NatWest

0800 096 8772

 2.19% October 2015 £995 3.8% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.69% above base rate for 2 years, giving a current pay rate of 2.19%. The rate then reverts to the SVR, currently 4.0%, after the Tracker period. The fee is £995 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/10/2015.

Halifax

 2.19% August 2015 £995 3.8% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.69% above base rate for 2 years, giving a current pay rate of 2.19%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £995 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable until 31/08/2015. Available for Remortgages only.

Yorkshire BS

 2.24% June 2015 £845 4.6% APR 75%
Our opinion: TRACKER – Yorkshire BS are offering a variable mortgage that charges 1.74% above the Bank of England base rate, giving a current pay rate of 2.24%. The rate reverts to the SVR, currently 4.99%, at the end of the tracker rate period. The fees payable are £845, a £130 processing fee also applies, and a minimum deposit of 25% is required. An early repayment charge is payable until 30/06/2015.

Nationwide BS

 2.24% 2 Years £999 3.8% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.74% above base rate for 2 years, giving a current pay rate of 2.24%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. The fee is £999 and a minimum deposit of 40% is required. There is an Early Repayment Charge payable for 2 years.

first direct

 2.28% Term £1999 2.4% APR 65%
Our opinion: TRACKER - This variable mortgage charges 1.78% above base rate for the term of the mortgage, giving a current pay rate of 2.28%. The fee is £1,999 and a minimum deposit of 35% is required. There is no Early Repayment Charge on this product. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

HSBC

 2.28% Term £1999 2.4% APR 60%
Our opinion: TRACKER - This variable mortgage charges 1.78% above base rate for the term of the mortgage, giving a current pay rate of 2.28%. The fee is £1,999 and a minimum deposit of 40% is required. There is no Early Repayment Charge on this product. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Fees Free

Mortgages with no booking or arrangement fees to pay, ranked on lowest payrate. Where provider's logo is displayed, products may be applied for directly

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed
Fixed Rate Mortgages

HSBC

 2.59% August 2015 £0 3.8% APR 60%
Our opinion: FIXED – HSBC are offering a 2 year fixed rate at 2.59% until August 2015, the rate then reverts to the SVR, currently 3.94%, after the Fixed period. A deposit of 40% is required and there is no arrangement fee payable. An Early Repayment Charge is payable until 31/08/2015.Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Virgin Money

 2.74% August 2015 £0 4.5% APR 60%
Our opinion: FIXED – Virgin Money are offering this 2 year fixed rate at 2.74%. The rate then reverts to the SVR, currently 4.79% for 5 years, this is then followed by a 0.25% discount off the SVR, giving a rate of 4.54%, for the Term of the mortgage. A deposit of 40% is required. There is no product fee and an early repayment charge is payable until 01/08/2015.

NatWest

0800 096 8772

 2.75% October 2015 £0 3.9% APR 60%
Our opinion: FIXED – NatWest are offering this 2 year fixed rate at 2.75%, the rate then reverts to the SVR, currently 4.0%, after the Fixed period. A deposit of 40% is required. There is no product fee and an early repayment charge is payable until 31/10/2015.

first direct

 2.99% 5 Years £0 3.5% APR 65%
Our opinion: FIXED – first direct are offering this 5 year fixed rate at 2.99%, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. There is no arrangement fee payable and a 35% deposit is needed. An early repayment charge is payable for 5 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Post Office

0800 1701 232

 3.15% May 2018 £0 4% APR 60%
Our opinion: FIXED – Post Office are offering this 5 year fixed rate at 3.15%, the rate then reverts to the Base Rate plus 3.99%, currently 4.49%, after the Fixed period. There is no arrangement fee payable and a 40% deposit is required. An early repayment charge is payable until 31/05/2018. Winner of Best Fixed Rate Mortgage Provider at the What Mortgage Awards 2012.
Tracker Mortgages

Cheltenham & Gloucester

 2.59% August 2015 £0 3.8% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.09% above base rate for two years, giving a current pay rate of 2.59%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. There is no product fee payable and a minimum deposit of 40% is required. There is an early repayment charge payable until 31/08/2015. Available for Remortgage only.

HSBC

 2.69% Term £0 2.7% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.19% above base rate for the term of the mortgage, giving a current pay rate of 2.69%. The rate then reverts to the SVR, currently 3.94%, after the Tracker period. There is no arrangement fee payable and a minimum deposit of 40% is required. There is no early repayment charge payable. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Halifax

 2.69% August 2015 £0 3.8% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.19% above base rate for two years, giving a current pay rate of 2.69%. The rate then reverts to the SVR, currently 3.99%, after the Tracker period. There is no arrangement fee payable and a minimum deposit of 40% is required. There is an early repayment charge payable until 31/08/2015. Available for remortgages only.

NatWest

0800 096 8772

 2.69% October 2015 £0 3.9% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.19% above base rate for two years, giving a current pay rate of 2.69%. The rate then reverts to the SVR, currently 4.0%, after the Tracker period. There is no product fee payable and a minimum deposit of 40% is required. There is an early repayment charge payable until 31/10/2015.

Virgin Money

 2.84% August 2015 £0 4.5% APR 70%
Our opinion: TRACKER -This variable mortgage charges 2.34% above base rate for two years, giving a current pay rate of 2.84%. The rate then reverts to the SVR, currently 4.79% for 5 years, this is then followed by a 0.25% discount off the SVR, giving a rate of 4.54%, for the Term of the mortgage. There is no arrangement fee payable and a minimum deposit of 30% is required. There is an early repayment charge payable until 01/08/2015.

FTB/Low Deposit

Mortgages suitable for those with a deposit of 10% or more, ranked on lowest payrate. Where a provider's logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed
Discount & Variable Mortgages

HSBC

 3.74% 2 Years £999 4.1% APR 90%
Our opinion: DISCOUNT – HSBC are offering this Discount rate at 3.74% for 2 years, the rate then reverts to the SVR, currently 3.94%, after the Discount period. A deposit of 10% is required and the arrangement fee is £999. An Early Repayment Charge is payable for 2 years. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Hinckley & Rugby BS

 3.95% 2 Years £990 5.4% APR 90%
Our opinion: DISCOUNT – Hinckley & Rugby BS are offering this Discount rate at 3.95% for 2 years, the rate then reverts to the SVR, currently 5.64%, after the Discount period. A deposit of 10% is required and the product fee is £990. There is no Early Repayment Charge payable.
Fixed Rate Mortgages

Chelsea BS

 3.59% July 2015 £1545 5.5% APR 90%
Our opinion: FIXED – Chelsea BS are offering this 2 year fixed rate at 3.59%, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. The fee is £1545, a £130 processing fee also applies, and a 10% deposit is required. An early repayment charge is payable until 31/07/2015.

Yorkshire BS

 3.64% June 2015 £845 4.9% APR 90%
Our opinion: FIXED – Yorkshire BS are offering this fixed rate at 3.64% for 2 years, the rate then reverts to the SVR, currently 4.99%, after the Fixed period. A deposit of only 10% is required and the arrangement fee is £845, a £130 processing fee also applies. An Early Repayment Charge is payable until 30/06/2015.

HSBC

 3.64% August 2015 £999 4% APR 90%
Our opinion: FIXED – HSBC are offering a 2 year fixed rate at 3.64% until August 2015, the rate then reverts to the SVR, currently 3.94%, after the Fixed period. A deposit of 10% is required and the arrangement fee is £999. An Early Repayment Charge is payable until 31/08/2015.Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

first direct

 4.19% 5 Years £1499 4.1% APR 90%
Our opinion: FIXED – first direct are offering this fixed rate at 4.19% for 5 years, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. A deposit of only 10% is required and there is a £1,499 product fee payable. An Early Repayment Charge is payable for 5 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Hanley Economic BS

 4.2% April 2018 £0 5% APR 90%
Our opinion: FIXED – Hanley Economic BS are offering this fixed rate at 4.20% for 5 years, the rate then reverts to the SVR, currently 5.19%, after the Fixed period. A deposit of only 10% is required and there is no arrangement fee payable. An Early Repayment Charge is payable until 30/04/2018.
Tracker Mortgages

first direct

 3.99% Term £999 4.1% APR 90%
Our opinion: TRACKER -This variable mortgage charges 3.49% above base rate for the term of the mortgage, giving a current pay rate of 3.99%. There is a £999 arrangement fee payable and a minimum deposit of only 10% is required. There is no early repayment charge. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Skipton BS

 4.09% 2 Years £995 5.6% APR 90%
Our opinion: TRACKER -This variable mortgage charges 3.59% above base rate for 2 years, giving a current pay rate of 4.09%. The rate then reverts to the Base Rate plus 4.99%, giving a current pay rate of 5.49%, after the Tracker period. There is a £995 product fee payable and a minimum deposit of only 10% is required. An early repayment charge applies for 2 years.

HSBC

 4.39% Term £899 4.6% APR 90%
Our opinion: TRACKER -This variable mortgage charges 3.89% above base rate for the term of the mortgage, giving a current pay rate of 4.39%. The arrangement fee is £899 and a minimum deposit of only 10% is required. There is no Early Repayment Charge payable. Winner of Moneysupermarket.com Supers award for Best Mortgage Provider.

Offset

Mortgages with an offset facility attached, ranked on lowest payrate. Where a provider's logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed
Discount & Variable Mortgages

Beverley BS

 2.39% 2 Years £1195 4.5% APR 75%
Our opinion: DISCOUNT – Beverley BS are offering a 2 year discount product at a rate of 2.39%, the rate then reverts to the SVR, currently 4.75%, after the Discount period. The arrangement fee is £1195 and you will require a deposit of 25%, an early repayment charge is payable for 2 years.

Melton Mowbray BS

 2.49% 3 Years £798 4.4% APR 65%
Our opinion: DISCOUNT – Melton Mowbray BS are offering a 3 year discount product at a rate of 2.49%, the rate then reverts to the SVR, currently 4.99%, after the Discount period. The arrangement fee is £798 and you will require a deposit of 35%, an early repayment charge is payable for 1 year.
Fixed Rate Mortgages

Chelsea BS

 1.94% July 2015 £1545 5.2% APR 60%
Our opinion: FIXED – Chelsea BS are offering a 2 year fixed product at a rate of 1.94%, the rate then reverts to the SVR, currently 5.79%, after the Fixed period. The arrangement fee is £1545 and a £130 processing fee also applies. You will require a deposit of 40% and an early repayment charge is payable until 31/07/2015.

Yorkshire BS

 1.99% June 2015 £1345 4.6% APR 60%
Our opinion: FIXED – Yorkshire BS are offering a 2 year fixed rate at 1.99%, the rate then reverts to the SVR, currently 4.99%, after the Fixed period. The arrangement fee is £1345 and a £130 processing fee also applies. You will require a deposit of 40% and an early repayment charge is payable until 30/06/2015.

first direct

 2.69% 3 Years £1999 3.7% APR 65%
Our opinion: FIXED – first direct are offering this 3 year fixed product at a rate of 2.69%, the rate then reverts to the SVR, currently 3.69%, after the Fixed period. You will require a deposit of 35% and an early repayment charge applies for 3 years. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider.

Norwich & Peterborough BS

 2.74% 2 Years £795 4.7% APR 75%
Our opinion: FIXED – For those with a 25% deposit, Norwich & Peterborough BS are offering a 2-year rate at 2.74%. The rate then reverts to the SVR, currently 4.99% after the Fixed period. The arrangement fee is £795 and there is an early repayment charge payable for 2 years.
Tracker Mortgages

Yorkshire BS

 2.44% June 2015 £845 4.6% APR 75%
Our opinion: TRACKER -This variable mortgage charges 1.94% above base rate for 2 years, giving a current pay rate of 2.44%. The rate then reverts to the SVR, currently 4.99%, after the Tracker period. The arrangement fee is £845, a £130 processing fee also applies, and a minimum deposit of 25% is required. There is an Early Repayment Charge payable until 30/06/2015.

first direct

 2.59% 2 Years £1499 3.7% APR 65%
Our opinion: TRACKER -This variable mortgage charges 2.09% above base rate for two years, giving a current pay rate of 2.59%. The rate then reverts to the SVR, currently 3.69%, after the Tracker period. The arrangement fee is £1499 and a minimum deposit of 35% is required. There is no Early Repayment Charge payable on this product. Winner of Moneysupermarket.com Supers award for Best Overall Financial Provider

Chelsea BS

 2.69% July 2015 £745 5.4% APR 75%
Our opinion: TRACKER– This variable mortgage charges 2.29% above base rate for 2 years, giving a current pay rate of 2.79%. The rate then reverts to the SVR, currently 5.79%, after the Tracker period. The fee is £745, a £130 processing fee also applies, and a 25% deposit is required. An early repayment charge is payable until 31/07/2015.

Norwich & Peterborough BS

 2.69% 2 Years £795 4.7% APR 75%
Our opinion: TRACKER -This variable mortgage charges 2.19% above base rate for 2 years, giving a current pay rate of 2.69%. The rate then reverts to the SVR, currently 4.99%, after the Tracker period. The arrangement fee is £795 and a minimum deposit of 25% is required. There is an Early Repayment Charge payable for 2 years.

Buy to Let

Mortgages suitable for those with a 40% deposit who are looking for a buy to let mortgage, ranked on lowest payrate. Where a provider's logo is displayed products may be applied for directly.

Lender Initial Rate Until Fees Overall Cost for Comparison Max Loan To Value Proceed
Fixed Rate Mortgages

The Mortgage Works

 2.74% August 2015 3.5% 5.1% APR 65%
Our opinion: FIXED – A fixed rate product is being offered by The Mortgage Works at a rate of 2.74% until August 2015, the rate then reverts to the SVR, currently 4.99%, after the Fixed period. The fee is 3.5% and you will need a deposit of 35%. An early repayment charge is payable until 31/08/2015.

Coventry BS

 3.19% April 2015 £1999 4.7% APR 65%
Our opinion: FIXED – Coventry BS have released this 2 year fixed rate at 3.19%, the rate then reverts to the SVR, currently 4.74%, after the Fixed period. The fee is £1999 and you will need a 35% deposit to qualify. There is an Early Repayment Charge payable until 30/04/2015.

Virgin Money

 3.39% August 2015 2.5% 4.9% APR 60%
Our opinion: FIXED – Virgin Money have released this 2 year fixed rate at 3.39%, the rate then reverts to the SVR, currently 4.79%, after the Fixed period. The fee is 2.5% and you will need a 40% deposit to qualify. There is an Early Repayment Charge payable until 01/08/2015.

Mansfield BS

 3.43% 2 Years 2% 5.6% APR 70%
Our opinion: FIXED – Mansfield BS have released this 2 year fixed rate at 3.43%, the rate then reverts to the SVR, currently 5.59%, after the Fixed period. The fee is 2% and there is also a £199 booking fee payable, and you will need a 30% deposit to qualify. There is an Early Repayment Charge payable for 2 years.

Market Harborough BS

 3.45% March 2015 3% 5.4% APR 70%
Our opinion: FIXED – A 2 year fixed rate product is being offered by Market Harborough BS at a rate of 3.45%. The rate then reverts to the SVR, currently 5.49%, after the Fixed period. The fee is 3% of the loan plus a £95 booking fee and an early repayment charge is payable until 31/03/2015.
Tracker Mortgages

Virgin Money

 3.39% August 2015 2.5% 4.9% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.89% above base rate for 2 years, giving a current pay rate of 3.39%. The rate then reverts to the SVR, currently 4.79%, after the Tracker period. The arrangement fee is 2.5%, a minimum deposit of 40% is required and an Early Repayment Charge is payable until 01/08/2015. Cashback available.

Principality BS

 3.49% June 2015 £999 5% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.99% above base rate for 2 years, giving a current pay rate of 3.49%, the rate then reverts to the SVR, currently 4.99%, after the tracker period. The arrangement fee is £999, a minimum deposit of 40% is required and an Early Repayment Charge is payable until 30/06/2015.

Woolwich (Barclays)

0845 677 9990

 3.49% 2 Years £1999 5.1% APR 60%
Our opinion: TRACKER -This variable mortgage charges 2.99% above base rate for 2 years, giving a current pay rate of 3.49%. The rate then reverts to the Base Rate plus 4.49%, giving a payrate of 4.99%, after the Tracker period. The arrangement fee is £1999, a minimum deposit of 40% is required and an Early Repayment Charge is payable for 2 years.

Halifax

 3.69% August 2015 £995 5% APR 60%
Our opinion: TRACKER -This variable mortgage charges 3.19% above base rate for 2 years, giving a current pay rate of 3.69%. The rate then reverts to the Base Rate plus 4.34%, giving a payrate of 4.84%. There is a £995 arrangement fee payable, a minimum deposit of 40% is required and an Early Repayment Charge is payable until 31/08/2015.

Lloyds TSB

 3.69% August 2015 £1094 4.9% APR 60%
Our opinion: TRACKER -This variable mortgage charges 3.19% above base rate for 2 years, giving a current pay rate of 3.69%. The rate then reverts to the Base Rate plus 4.34%, giving a payrate of 4.84%. There is a £1094 arrangement fee payable, a minimum deposit of 40% is required and an Early Repayment Charge is payable until 31/08/2015.

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Guide to first time buyer mortgages

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First time buyer mortgages

 

Buying your first home is hugely exciting but it can also be quite daunting and nerve-wracking. One of the things many first time buyers worry most about is applying for a mortgage. With thousands of mortgage products available how on earth do you know what to go for?

 

Choosing a mortgage is actually more straight forward than you might initially expect. Here we explain all you need to know to help you find the best mortgage to enable you to buy your first home.

 

Deals for first-time buyers

 

There are thousands of mortgages on the market and they are all theoretically available to first-time buyers. Many banks and building societies also package specific deals for first-time buyers, which may include incentives such as cashback, low fees or a contribution towards legal costs.

 

How much can I borrow?

 

It's a good idea to work out roughly how much you can borrow before you go house hunting. There is no point in picking your ideal home only to find that it is beyond your financial reach.

 

In the past, lenders traditionally calculated the amount you could borrow as a multiple of your salary. So, you might typically be granted a mortgage of three times your gross annual earnings. But most banks and building societies these days advance funds according to affordability and will ask for details of your incomings and outgoings before they decide on a figure. They will also take into account the impact of future interest rate rises.

 

Our mortgage calculator will give you a rough idea as to the amount you should be able to borrow.

 

However, your ability to get a mortgage isn't down to your salary and outgoings alone, your credit score is important, too. If you have suffered from bad debts in the past, your application for mortgage finance might be turned down.

 

Save for a deposit

 

You will almost certainly have to save up for a deposit because the days of a 100% mortgage are gone. Some banks and building societies will lend up to 95% of the property's value - this will be described as the loan to value of LTV. In other words, you will need a minimum deposit of 5%. You will have a wider choice if you can put down a 10% deposit. However, the very best rates are reserved for borrowers with a big deposit - in some cases you'll need as much as 40%.

 

Therefore, aim to save as large a deposit as possible because you will have access to a wider range of mortgage products and be able to benefit from more competitive rates.

 

Fixing your mortgage rate

 

There are thousands of different mortgage deals but they broadly fall into two categories - variable rate and fixed rate.

 

Many first-time buyers favour fixed-rate mortgages because they allow them to budget with certainty. With a fixed rate, you know exactly how much you will have to pay out each month, so you don't need to worry about fluctuations in interest rates.

 

You can usually fix your mortgage for two, three or five years. But some lenders offer long-term fixes of ten years or more.

 

It's important to think about how long you want to lock yourself into a mortgage for. Most will charge you a penalty - known as an early repayment charge (ERC) - if you need to get out of the deal before the end of the fixed term. Therefore, most first time buyers tend not to go for long term fixed rate deals because a lot can change in 10 years.

 

The interest rates on fixed rates tend to be slightly higher than those on the best variable rate deals, but that is because you are paying for the security and peace of mind. Remember, variable rates can change so if the Bank of England puts interest rates up, variable rates will rise while a fixed rate will remain the same.

 

Variable mortgages

 

There are two types of variable rate mortgage.

 

Trackers are directly linked to the Bank of England base rate and move in line with changes to that. So if the Bank of England puts the base rate up by 0.25%, your mortgage rate will rise by the same amount.

 

The other type is a discount. Discount mortgages are linked to the lender's standard variable rate (SVR), not the Bank of England Base rate. SVRs are set by each lender and therefore they can change even if there's been no change in the Bank of England rate. There's a bit more risk attached to a discount so trackers tend to be more popular with those opting for a variable mortgage.

 

Some lenders play around with different types of mortgage. They might combine a fix and a tracker, or offer some sort of guarantee that a variable loan will not rise above a certain rate. Always make sure you understand how your mortgage works so that you do not pay a premium for a product that you don't need.

 

Fees for first-time buyer mortgages

 

Don't forget to factor fees into your cost calculations. Most lenders charge an arrangement fee for your mortgage, which could be £1,000 or more. Some also levy a non-refundable booking fee of several hundred pounds.

 

Also, don't forget the other fees and costs associated with buying a home - you'll have to pay for a survey and for the conveyancing. Then of course, there's the cost of furnishing your first home. It can all mount up pretty quickly.  

 

Choosing the right mortgage

 

MoneySupermarket makes it easy for first-time buyers to choose the right mortgage. Whether you have a big deposit or small, want a fixed or a variable rate deal, we compare first-time buyer mortgages from a wide range of lenders so it's one less thing for you to worry about.  What's more, our comparison service is free, independent and online.

 

Moneysupermarket.com Limited is an appointed representative of Moneysupermarket.com Financial Group Limited, which is authorised and regulated by the Financial Services Authority (FSA FRN 303190). Moneysupermarket.com Financial Group Limited, registered in England No. 3157344. Registered Office: moneysupermarket House, St. David's Park, Ewloe, CH5 3UZ. Telephone 01244 665700.