First time buyers turning to no-deposit mortgages

15-Jun-2007

The number of no-deposit mortgages available in the UK has doubled over the past 12 months, according to new research, as first time buyers look for alternative ways to get onto the housing ladder.

Research from MoneyExpert.com has found that there are currently 127 no-deposit fixed-rate mortgages available, compared to just 60 in May 2006.

"Affordability is the buzz word at the moment as lenders look to find new ways to bring first-time buyers into the property market. Offering 100 per cent mortgages is another example of this, as saving for a deposit on even the average property can take years," commentedMoneyExpert chief executive Sean Gardner.

However, first time buyers have recently been cautioned that 100 per cent mortgages are by no means an easy solution to financial problems, and separate research has suggested that the number of competitive fixed-rate deals on offer has fallen significantly.

"Fixed rate deals under six per cent are still readily found, but if swap rates continue to rise at their current pace it won't be long before we see the demise of sub-six percent mortgages, unless you are prepared to pay a massive upfront fee," advised Lisa Taylor of Moneyfacts.co.uk.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

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