Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
Watch This Group Signal Stock Market Trend Changes - 22nd Mar 18
Stocks are Gapping Beneath the Trendline Support - 22nd Mar 18
Fed Action Casts Shadow on Bullish Case for Stocks - 22nd Mar 18
A Strong Economy and Weak Stock Market is Bullish for Stocks - 22nd Mar 18
Fed Raises US Interest Rates 25bp – Where Are We In The Stock Market Cycle? - 22nd Mar 18
Why Spotify Will Likely Surge During Its IPO - 22nd Mar 18
SY Police Arrest Woman for Blowing Trumpet at Sheffield Tree Felling Protest - 22nd Mar 18
Facebook: The Anti-Social Network Covert Data Gathering - 21st Mar 18
Additional Signs for Gold and Silver Amid Increasing FOMC Tension - 21st Mar 18
Credit Concerns In U.S. Growing As LIBOR OIS Surges to 2009 High - 21st Mar 18
Stock Markets Are Flat-to-lower Before the FOMC - 21st Mar 18
Will Powell’s Actions Pop Stock Market Perfection - 21st Mar 18
Economic Moral Hazards of the International Criminal Court - and Philippines Withdrawal - 21st Mar 18
Larry Kudlow vs. Vladimir Putin on Gold - 21st Mar 18
Trump Builds Economy and War Machine - 21st Mar 18
This Stock Market "Illusion" Can Destroy Once-Vibrant Portfolios - 21st Mar 18
Gold Short-term Pull Back in Progress - 20th Mar 18
Stocks Appear to be Under Pressure - 20th Mar 18
Time To Eliminate Your Wall Street Tax? - 20th Mar 18
The Beast from the East Snow, UK Roads Driving Car Accidents - 20th Mar 18
Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - 19th Mar 18
2018 Reversal Dates for Gold, Silver and Gold Stocks - 19th Mar 18
This Tech Breakthrough Could Save The Electric Car Market - 19th Mar 18
Stocks Set to Open Lower, Should You Buy? - 19th Mar 18
The Wealth Machine That Rising Interest Rates Create Conflict With The National Debt - 19th Mar 18
Affiliate Marketing Tips and Network Recommendations - 19th Mar 18
Do Stocks Bull Market Tops Need Breadth Divergences? - 19th Mar 18
Doritos Instant £500 Win! Why Super Market Shelves are Empty - 19th Mar 18
Bonds, Inflation & the Market Amigos - 19th Mar 18
US Housing Real Estate Market and Banking Pressures Are Building - 19th Mar 18
Stock Market Bulls Last Stand? - 18th Mar 18
Putin Flip-Flops Like A Drunken Whore On Bitcoin Cryptocurrency Legalization - 18th Mar 18
How to Legally Manipulate Interest Rates - 18th Mar 18
Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - 18th Mar 18
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

UK First-time Home Buyer Market is Robust and Ready for Spring

Housing-Market / UK Housing Feb 21, 2017 - 03:15 PM GMT

By: MoneyFacts


In just a couple of weeks’ time, Spring will arrive, which is typically the time of year when house hunters start searching for their ideal home as many more houses become listed for sale. Once first-time buyers have built up a big enough deposit to get themselves onto the property ladder, the next port of call is to find the right property and to pick the best mortgage.

The latest research from can reveal that buyers who have only a 5% deposit will have a much healthier number of deals to choose from than in years gone by. Despite the closure of the Help to Buy Mortgage Guarantee scheme, it’s still a robust market that has the potential to keep growing.

Rachel Springall, Finance Expert at, said:

“The first-time buyer mortgage market has gone from strength to strength over the years boosted by Government support. In previous years, there had been a lack of competition for those considered more risky, due to the small amount they could put down as a deposit. Prospective buyers today have so many more cost-effective mortgage options available, potentially making their dream of owning their first home much more achievable.

“Five years ago, long before the Help to Buy Mortgage Guarantee Scheme launched, there were only 59 deals available to buyers with a 5% deposit, from just 24 lenders – 75% of which were mutuals. Today, the number of deals has rocketed to 276 with 53 different lenders, including most of the largest high street banks.

“It’s not just the available choice that will benefit first-time buyers, there’s also a huge reduction in the cost of a mortgage, with two and five-year fixed rates for those with a 5% deposit falling from 5.93% and 5.89% to 3.92% and 4.43% respectively over the last five years. Based on the average five-year fixed rate, that’s a difference of £7,715.40* in terms of repayments during the first five years of the mortgage.

“Borrowers hoping to reduce the expense can also take advantage of lucrative incentive packages, such as the Best Buy deal from Hanley Economic Building Society, priced at 3.40% for two years, which has a £500 fee and an incentive package of free valuation and £250 cashback. Not only this, but the biggest banks are also looking to entice first-time buyers – demonstrated by Barclay’s offer to pay up to £2,500 in cashback to reimburse the stamp duty charge on a £250,000 home.”

“Obviously, there are advantages for those first-time buyers who waited until now to get the best mortgage deal, yet there are also some significant disadvantages to buying a home today compared to years past. House prices are continuing to rise, so prospective buyers may well be struggling to amass a large enough deposit, particularly if a large portion of their income goes to rent. With this in mind, borrowers would be wise to be stringent with their daily finances, be on the lookout for the best mortgage deals and seek independent financial advice before entering into any arrangement.” - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2018 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules