Despite the tougher conditions imposed by the Mortgage Market Review(MMR) there still appears to be plenty of appetite from lenders to service the first time buyer market.
Today Tesco Bank, which first started mortgage lending in August 2102, announced its first foray into the 90% LTV mortgage market with some very competitive products, including a 5 year fix at 4.29% with a £995 fee – it sits just behind Yorkshire Building Society (4.24% and £975 fee) at the top of the best buys.
Other shorter term fixed rate deals on offer from Tesco Bank are 3.49% for 2 years and 3,99% for three years – both with a £995 fee.
To give potential borrowers an idea of monthly repayments on a 4.29% rate (assuming a mortgage term of 25 years), here are some examples:
- £130,000 mortgage = £707 per month
- £140,000 mortgage = £762 per month
- £150,000 mortgage = £816 per month
For 95% borrowers, Help to Buy schemes will be the first port of call for first time buyers, however there are non-Help to Buy lenders worth a look too – including a new deal from Norwich and Peterborough Building Society launched only last week at 5.59% with no product fees and a £250 cashback.