Yorkshire Bank has cut rates on its five-year fixed-rate at 95% loan to value (LTV) to a market leading 3.89%, which comes with free valuation, £250 cashback and no fees.
And Sainsbury’s has today revealed a string of mortgages for first-time buyers with a 5% deposit, including a two-year fixed rate at 3.69% and five-year fix of 4.05%
Both the deals are fee-free, and again come with £250 cashback and free valuation.
Hitting the heights
First-time buyers are at their highest levels in 11 years, according to the latest UK Finance figures.
And it appears lenders are now battling to offer some of these borrowers ever better deals.
Tesco Bank also launched new mortgage rates this week, which included a two-year fix of 3.89% and five-year fix of 4% at 95% LTV.
West Brom BS has also today reduced selected to offer a five-year fix of 3.94% at 95% LTV.
Rachel Springall from Moneyfacts.co.uk said: “It’s fantastic to see some heated competition in the market among lenders looking to entice borrowers with as little as a 5% deposit.
“A number of the new deals to surface this week are offering not just a reasonable interest rate, but also either a cashback incentive or a low product fee – ideal for first-time buyers trying to keep their upfront costs down.
“First-time buyers need as much help as they can get.
“If they are struggling to get onto the property ladder they should do their best to take advantage of Government initiatives such as Help to Buy ISAs to boost their deposit.
“If borrowers can afford to do so, they should attempt to push their savings to raise a 10% deposit as they will find much lower interest rates available in this arena.”