Ian Scott International


Five mortgages for first time buyers

Here is Telegraph Money’s pick of the best-buy mortgages for buyers with 5pc deposits. All are available to first-time buyers. 

First-time buyers often have relatively small deposits and a more limited range of options. This means the lowest rates often aren’t available to them. 

But with Bank Rate lower than ever, even first-time-buyer mortgages are relatively cheap, with borrowers able to make the most of rates below 3pc and generous fee-free and cashback offers. 

Calculations are based on a first-time buyer applying for a 25-year mortgage on a property worth £200,000 with a deposit of £10,000. 

1. Barclays has a three-year fixed rate at 2.79pc. It costs 3.74pc after that, and there are no fees. Monthly repayments of £880, average annual costs of £10,628. 

2. Mansfield Building Society has a discounted rate at 2.94pc for two years, or a discount at 3.24pc for three years. Both mortgages are at 5.1pc after that and have fees of £499. Monthly repayments of £895 or £925, average annual cost of £11,087 or £11,330.

3. Melton Building Society’s three-year fix at 3.29pc has fees of £638. Monthly repayments would be £930, average annual cost is £11,372.

4. Hinckley and Rugby Building Society has a 2.15pc discount for the full mortgage term at 3.49pc. Fees of £999. Monthly repayments of £950, average annual cost £11,452.

5. Furness Building Society has a two-year fixed-rate mortgage at 3.5pc, with fees of £195. Monthly repayments are £951, average annual cost is £11,512.

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