'Mortgage deals available' for first-time buyers
27th Jun 2012
There are plenty of mortgage offers that first-time buyers can take advantage of in the weeks and months ahead in order to secure a foot on the property ladder, one expert has acknowledged.
Paula John, editor-in-chief at Your Mortgage, said that some building societies are offering particularly competitive rates at the moment, but banks are also doing their best to claim market share, which all benefits the buyer.
"There are a lot of different banks out there at the moment - there are some niche players that are offering very good rates. When it comes to building societies, you have got some very small ones who are offering keenly priced rates at the moment," she noted.
The expert's comments came after new research by the Telegraph revealed that building societies are stealing a march on the high street banks by increasing their mortgage lending and offering more competitive rates in both the savings and home loan markets.
More than 60 per cent of 'best buy' mortgages are now offered by building societies, and it is these mutual organisations that are providing affordable mortgages for first-time buyers and those who do not have 25 per cent equity in their homes, the data indicates.
Ms John acknowledged that there are many small building societies that have traditionally managed to offer really low rates and get into 'best buy' tables.
"Sometimes they do that for marketing purposes, which is no bad thing; if you can't afford to advertise in the national press, but you can get into a 'best buy' table because your rate is so low, then that can encourage people to get in touch with you," the expert pointed out.
Posted by Staff Writer: Frances McDonald
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