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Low deposit mortgage deals for first time buyers

Buying your first home takes a lot of dedicated saving, as you’ll have to provide a deposit before the mortgage lender will give you a loan.

Fortunately, there are low deposit mortgage packages designed specifically for first time buyers – take a look at what we found.

Santander is offering a 90 per cent loan to value (LTV) mortgage, which means borrowers only need a 10 per cent deposit. It has a fixed rate of 5.79 per cent for two years, after which it reverts to a standard variable rate, currently 4.24 per cent. The booking fee is £99 and the maximum loan limit is £300,000. This mortgage comes with a Homebuyer Solution package which includes a free standard property valuation and £250 cashback on completion.

Lloyds TSB has an exclusive first time buyer deal at 85 to 90 per cent LTV, which would require a deposit of between 10 and 15 per cent. It has a fixed rate of 6.09 per cent for the first two years, then it reverts to a variable rate, currently 3.99 per cent, for the rest of the mortgage. There is no product fee and you can borrow from £5,000 up to £1 million.

The Halifax has a low deposit mortgage for first home purchasers, at 85 to 90 per cent LTV, requiring a 10 to 15 per cent deposit. It has a fixed rate of 5.99 per cent for two years and after that it reverts to the standard variable rate, which is currently 3.99 per cent. Borrowers can apply for a loan of up to £2 million and there is no product fee.

 

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