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Real first time buyer rates

Sumpy001
Sumpy001 Posts: 1 Newbie
in House buying, renting & selling
Hi everyone, first timer go easy....

I'm currently renting and looking to buy our first house, the house is £225000 and we will put a 15% deposit down giving us a 85% LTV.
What rates have people been getting as I've used mortgage calculations and seen rates as low as 1.6% on a 2 year fixed deal for example but not sure if many people actually receive these low rates.

Any help greatly appreciated.
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Comments

  • ACG
    ACG Posts: 23,727 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    When you apply for a mortgage with high street lenders, you either pass the score for A mortgage or you dont. It would not be a case of you applying and them saying you do not pass the score for 1.6% but we can offer you one at 3%.

    Assuming you pass affordability, checks and the credit score you will get the mortgage. But you need to be realistic, if you have 5 defaults from 12 months ago, you are probably not going to be getting rates of 1.6%.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • firsttimeworrywart
    firsttimeworrywart Posts: 32 Forumite
    Hey sumpy001

    Welcome to the board!

    I'm a FTB, about to complete on a property where we have provided a 10% deposit, our mortgage rate is 2.35% fixed for 5 years.. rates are pretty good at the moment :-)

    Good luck!
  • sillyhilly
    sillyhilly Posts: 176 Forumite
    2-years will have the lowest, followed by 3-year and then 5-year etc.

    All depends what you are after. A lower interest rate / looking at moving / letting out, then go for a 2-year. A bit of stability and consistency in your payments / no intention of moving, then go for a longer period.
  • ilikepancakes
    ilikepancakes Posts: 56 Forumite
    firsttimeworrywart wrote: »
    Hey sumpy001

    Welcome to the board!

    I'm a FTB, about to complete on a property where we have provided a 10% deposit, our mortgage rate is 2.35% fixed for 5 years.. rates are pretty good at the moment :-)

    Which bank offered such a good rate to you?
    We are looking at the moment and for example Lloyds offered 3.45% fixed for 2 years. Property price £255k, 95% LTV

    When we met with mortgage adviser he showed us the whole list displayed on his PC and lowest were around 2.8%

    Thanks
  • sillyhilly
    sillyhilly Posts: 176 Forumite
    ilikepancakes wrote: »
    Which bank offered such a good rate to you?
    We are looking at the moment and for example Lloyds offered 3.45% fixed for 2 years. Property price £255k, 95% LTV

    When we met with mortgage adviser he showed us the whole list displayed on his PC and lowest were around 2.8%

    Thanks

    That's why.

    Higher LTV, less attractive interest rates.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary First Post Name Dropper Combo Breaker
    We used a mortgage broker and best rate she found for us was I think around 2.3% on five year fixed.

    That was 3 years ago.
  • ilikepancakes
    ilikepancakes Posts: 56 Forumite
    edited 20 June 2019 at 12:04PM
    sillyhilly wrote: »
    That's why.

    Higher LTV, less attractive interest rates.

    Hmm... 5% LTV difference makes such a big impact on interest rate?
  • epinjy
    epinjy Posts: 71 Forumite
    First Anniversary
    2.49% for 10 year fix at start of May. 80% LTV
  • stayathomeandsave
    stayathomeandsave Posts: 17 Forumite
    Sumpy001 wrote: »
    Hi everyone, first timer go easy....

    I'm currently renting and looking to buy our first house, the house is £225000 and we will put a 15% deposit down giving us a 85% LTV.
    What rates have people been getting as I've used mortgage calculations and seen rates as low as 1.6% on a 2 year fixed deal for example but not sure if many people actually receive these low rates.

    Any help greatly appreciated.

    Yes, as previously mentioned by sillyhilly, it is dependent on your LTV. I was a FTB in Aug 2018 and I got a 2 year fix at 1.7% on a 75% LTV. Ultimately the more you can put down as a deposit the better every time!
  • sillyhilly
    sillyhilly Posts: 176 Forumite
    ilikepancakes wrote: »
    Hmm... 5% LTV difference makes such a big impact on interest rate?

    Unfortunately, yes! It doesn't make it easier to get on the ladder, that's for sure.

    As an example, HSBC (who I have my mortgage with), offer the following rates on a 3-year fixed. The largest drop is from 95% to 90% LTV. If you can, try to scrape a bit more together to get there.

    95% LTV - 3.29%
    90% LTV - 2.34%
    85% LTV - 2.19%
    75% LTV - 1.99%
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