What Are the Average First-Time Buyer Mortgage Rates?
Interest rates fluctuate considerably, and while they have risen steeply over the last few months, that doesn’t mean all first-time house buyers will expect to pay the highest rates.
Higher Bank of England base rates inevitably mean that average first-time buyer mortgage rates will increase, but you can still access mortgages for first-time house buyers with rates beginning at between 3-4%.
One of the important factors first-time house buyers often overlook is the fee structure, which is payable on top of the interest. Products that look to have great first-time buyer mortgage rates but costly arrangement or product fees may be much less attractive than they first appear.
Are There Mortgages Designed for First-Time House Buyers?
While some lenders have general products that may be suited for first-time house buyers, others offer specialist products that have different first-time buyer mortgage rates than other mortgages.
Not every lender offers first-time buyers help with product selection, but we can suggest mortgages designed for first-time house buyers with low deposit requirements, cash-back incentives, free legal costs or complimentary valuations.
Other products may also be a good option for first-time house buyers, such as fixed-term mortgages with lower interest rates for first-time buyers or reserved for applicants who qualify for first-time buyer stamp duty relief.
Some of the most beneficial mortgages for first-time house buyers are not available on the general market or are offered by niche lenders who only deal with approved brokers, so it’s well worth getting in touch to establish whether you can get a better deal.
Finding a First-Time Buyers Scheme to Help With Mortgage Costs
First-time house buyers can apply to varied initiatives, either intended to make buying a home easier, reduce the costs, limit the deposit savings required, or make it more likely a lender will approve first-time house buyers.
The Shared Ownership First-Time Buyers Scheme
Shared Ownership is managed by local housing authorities, primarily aimed at first-time house buyers but sometimes open to all eligible applicants. This scheme provides first-time buyers help by allowing them to purchase a share of the home, paying a nominal rent on the balance.
If you can't afford the level of deposit you would need to access the lowest first-time buyer mortgage rates; Shared Ownership can help you buy a property in stages rather than outright.
First Homes for First-Time House Buyers
The First Homes scheme provides discounts on new build properties for low-income first-time house buyers, offering discounts of 30% to 50% on the market price.
First-Time Buyers Help Through Right to Buy
Tenants living in public sector or council housing can apply for a first-time house buyers mortgage through Right to Buy (or Right to Acquire) if they have lived in a property for a long time and receive a discount on the purchase value.
Lifetime ISAs for First-Time House Buyers
Lifetime ISAs, or the first-time house buyers ISA, allows those saving for a deposit on a new home to achieve interest contributions of 25%, with a maximum deposit of £4,000 per year. While this first-time buyers scheme isn't directly related to a mortgage, it means you can boost your savings by up to £1,000 annually.
Please note that the Help to Buy first-time buyer schemes have now closed, but the Lifetime ISA remains open to new applicants.
How to Choose the Right First-Time House Buyers Mortgage
Experienced brokers have ample experience helping first-time house buyers achieve the most competitive first-time buyer mortgage rates available, comparing hundreds of lenders and products to make independent suggestions.
We don’t recommend using price comparison sites to select the lowest first-time buyer mortgage rates, as these reflect only a small proportion of the mainstream market.
The best way forward is to speak to Revolution Finance Brokers to request first-time buyers help, and we’ll arrange a good time to speak about your circumstances and begin the process to secure the best first-time buyer mortgage rates.
Mortgage Alternatives for First-Time House Buyers
If you’re struggling to find first-time buyer mortgage rates that are affordable in the current climate, all is not lost. We’ll be happy to run through the options to find first-time buyers help and suggest those schemes that may be relevant.
Alternative options for first-time house buyers might include a guarantor mortgage if you don’t have a sufficient deposit to qualify for manageable first-time buyer mortgage rates. Other products, such as family springboard or offset mortgages, can be suitable for first-time house buyers whose family members are happy to help.
However, in many cases securing the best first-time buyer mortgage rates isn’t so much about the product – it’s about finding the lender who is most likely to approve your application, accept your deposit, and allow you to move forward into your new home.
