Affordable first time buyer mortgages launched by post office
May 14, 2010
Over recent years first time buyers have experienced many difficulties when it comes to getting onto the property ladder, and with everything from high property prices to mortgage restrictions and high deposit levels to hinder their chances of getting onto the property ladder many have had to give up on the dream of homeownership, at least for now.
However, the Post Office is hoping that it can offer some first time buyers a helping hand after launching a range of mortgages that are designed to suit the needs and pockets of first time buyers. At a time when many lenders are demanding huge deposits from first time buyers the Post Office has launched deals that require a relatively low deposit.
The mortgages, which are targeted towards first time buyers, are available with just a 10 percent deposit, and whilst this is far higher than the deposits required three or four years ago, which stood at just 5 percent or in some cases 0 percent, it is still much lower than the deposits of 15 percent and more that many other lenders are now demanding.
The mortgages offer fixed rates set at between 5.45 percent and 5.99 percent, and the fixed periods are for two, three, or five years. There is also a tracker mortgage available from the Post Office with an interest rate of 5.49 percent. There are some 10 percent mortgage deals now returning to the market for first time buyers, but the interest rates attached to these can be very high.
The Post Office stated: “Whilst there are existing 90% deals available, many remain out of reach for most borrowers because the rates are too high. We’re offering more affordable rates that will allow more borrowers the opportunity to take out a mortgage with a smaller deposit. This should particularly help first time buyers.”
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