Rightmove comment on new 99% first-time buyer mortgage product
Matt Smith, Rightmove’s mortgage expert said: “It’s encouraging to see lenders continuing to try to innovate in the mortgage market, even after the government abandoned its own plans to encourage lower deposit mortgages in the Spring Budget. This new product has the potential to help some first-time buyers who fit the affordability criteria, but are struggling to raise a bigger deposit. The game-changer for first-time buyers will be an innovation, or regulatory changes, that helps with the challenge of raising a deposit, and being able to borrow enough from a lender, and there should be support for lenders who are trying to break the mould to help more would-be first-time buyers onto the ladder.”
Headlines
- The average 5-year fixed mortgage rate is now 4.84%, up from 4.59% a year ago
- The average 2-year fixed mortgage rate is now 5.23%, up from 4.92% a year ago
- The average 85% LTV 5-year fixed mortgage rate is now 4.79%, up from 4.60% a year ago
- The average 60% LTV 5-year fixed mortgage rate is now 4.35%, up from 4.26% a year ago
- The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,1,01 per month, up from £1,071 per month a year ago
Latest rates data
| LTV
(loan to value) |
Term
|
Average rate 27th March 2024 | Lowest rate 27th March 2024 | Average rate
a year ago |
|
95%
|
2 year fixed | 5.91% | 5.39% | 5.60% |
|
95%
|
5 year fixed | 5.47% | 5.07% | 5.19% |
|
90%
|
2 year fixed | 5.46% | 5.09% | 5.22% |
|
90%
|
5 year fixed | 4.98% | 4.64% | 4.83% |
|
LTV (loan to value) |
Term |
Average rate 27th March 2024 | Lowest rate 27th March 2024 | Average rate
a year ago |
|
85%
|
2 year fixed | 5.22% | 4.86% | 4.97% |
|
85%
|
5 year fixed
|
4.79% | 4.38% | 4.60% |
|
75%
|
2 year fixed |
5.05% | 4.59% | 4.68% |
|
75%
|
5 year fixed
|
4.72% | 4.36% | 4.34% |
|
60%
|
2 year fixed
|
4.69% | 4.46% | 4.63% |
|
60%
|
5 year fixed |
4.35% | 4.13% | 4.26% |
Rightmove can provide average monthly mortgage payments based on the latest available asking price and mortgage rate data. For example, the average monthly mortgage payment on a first-time buyer type property which is currently £226.370, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,101 per month if repaying over 25 years, compared with £1,071 per month a year ago.
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