Best Rate Mortgages
Tuesday, May 5th, 2009As 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
|
Mortgage Company |
Mortgage Type |
Initial Rate |
Monthly Cost |
Time Period |
Tie-in Period |
25 year APR |
|
First Direct |
Tracker |
3.09% |
£479 |
term |
none |
3.20% |
|
Furness Building Society |
Discounted variable (stepped) |
3.54% |
£503 |
12 months |
36 months |
5.30% |
|
Cumberland |
Tracker |
3.59% |
£505 |
term |
12 months |
3.80% |
|
Clydesdale Bank |
Variable |
3.99% |
£527 |
term |
none |
4.20% |
|
Yorkshire Bank |
Variable |
3.99% |
£527 |
term |
none |
4.20% |
|
Manchester Building Society |
Variable |
4.00% |
£528 |
term |
24 months |
4.10% |
|
Penrith Building Society |
Variable |
4.15% |
£536 |
term |
none |
4.20% |
|
Ipswich Building Society |
Discounted variable |
4.24% |
£541 |
31/07/2012 |
none |
5.00% |
|
Loughborough |
Discounted variable |
4.24% |
£541 |
term |
36 months |
4.40% |
|
Share to Buy Ltd |
Discounted variable |
4.29% |
£543 |
term |
none |
4.40% |
|
Bath Investment & Building Society |
Discounted variable |
4.49% |
£561 |
36 months |
36 months |
5.40% |
|
Teachers Building Society |
Discounted variable |
4.49% |
£555 |
36 months |
36 months |
5.10% |
|
Mansfield |
Discounted variable |
4.54% |
£558 |
36 months |
36 months |
5.30% |
|
Norwich & Peterborough Building Society |
Discounted variable |
4.55% |
£558 |
48 months |
48 months |
4.90% |
|
Britannia Building Society |
Tracker |
4.59% |
£560 |
term |
12 months |
4.80% |
|
Tipton & Coseley |
Discounted variable |
4.59% |
£560 |
30/06/2012 |
30/06/2012 |
5.00% |
|
Hanley Economic Building Society |
Variable |
4.74% |
£569 |
term |
none |
4.90% |
Information based on the following:
100k mortgage value
125k house value
Repayment mortgage
25 year term
Variable rates
First time buyer only