The co-op jumps straight into the top spot with a fantastic rate of 2.49% – lets hope this kick starts the stagnant mortgage lenders into some competition, lower deposit percentages and lower rates are what we need.

Based on the following:
100k mortgage value
160k house value
Repayment mortgage
25 year term
Variable rates
Remortgage

As most people are probably aware the rates that banks and buildings societies hand out vary massively. The current financial climate has altered this somewhat. The difference between getting a good rate and a bad one is surprisingly small all you have to do is find a deposit.

Some great tips on how to achieve the best rate mortgage:

1. Deposit Deposit Deposit – borrow, beg or steal ! If you have a deposit in the 20% area expect a good rate around 3 – 4% if you only have a 5% deposit expect a bad rate around 5% – 7%
2. Try to negotiate a normal mortgage rather than a buy to let mortgage, this could also create a massive reduction in interest rates
3. Over estimate your house value – this can create a larger deposit % on paper, thus giving you a better rate and saving some serious money!

Current best rate mortgages for first time buyers

Information based on the following:
100k mortgage value
125k house value
Repayment mortgage
25 year term
Variable rates
First time buyer only