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Rates Beginning To Rise For FTBs

First-time buyers (FTBs) are set to see mortgage rates creeping up, with research by moneyfacts.co.uk revealing that those searching for finance now are likely to be paying more than those who were able to get on the property ladder back in January this year.

According to the website’s research, the average cost of a two-year fixed rate mortgage for those with a five per cent deposit has increased by 0.10 per cent since April, and by 0.35 per cent since January this year.

Anyone who has managed to get a ten per cent deposit together will fare slightly better, with rates for 90 per cent LTV mortgages only climbing by 0.02 per cent between April and July this year, and by 0.05 per cent since the start of the year.

Finance expert at the website Charlotte Nelson stated that inflationary pressures within the economy are the main reason behind the climbing mortgage rates.

It’s not great news for FTBs, who are likely to already be finding it hard to save the required deposit, without having to worry about spending more cash each month to cover their mortgage once they’ve bought.

However, it isn’t all bad news according to Charlotte, who noted that although they need to find big deposits and are facing rising rates, “there are more deals on the market right now than at any time since the financial crisis”.

She added that FTBs should try to buy as soon as possible, because rates on high LTV mortgages are only likely to rise as the year progresses.

Buyers may also be encouraged by the news earlier this year that asking prices for UK property fell in June for the first time since the financial crisis in 2009.

If you’re looking for estate agents in Spennymoor, get in touch today and we can help you find your ideal home.