Mortgage options for first-time buyers are greater than ever before - but Brits should still choose their mortgage deal carefully.
Financial comparison website moneysupermarket.com says new buyers normally have to stump up a five per cent deposit to gain access to some of the best deals.
Moneysupermarket.com says rising house prices have encouraged more mortgage providers to offer more competitive deals to stimulate buying, meaning more first-time buyers have a better chance of getting a foot on the property ladder.
Louise Cuming from moneysupermarket.om said: "A number of specific first-time buyer products have higher interest rates when compared with 95 per cent LTV [loan to value] products as they are deemed a lot more risky. To this end, lenders will often impose any number of conditions as well as fees such as the higher lending charge.
"Finding that deposit isn't always easy and saving for it can seem a daunting task.
"However, there is no doubt that the 95 per centers get the best deals, compared with those who go for the 100 per cent LTV or 97 per cent LTV option."
Other good deals include 100 per cent mortgages, 130 per cent mortgages, parental guarantor mortgages and graduate mortgages.To read more about First Time Buyer Mortgages, click here.
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