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More Competition for Ninety Five Per Cent Mortgages

Written By On 08/11/2013

The second phase of the Help to Buy scheme was actioned last month, a few months earlier than originally planned by the Government. The main purpose of this was aiding property buyers with a very low deposit to secure their home using a ninety five per cent loan for the remaining balance.

It turns out amidst all the commotion caused by this, there are two lenders thus far that have confirmed they will be taking part. They are the Royal Bank of Scotland and Lloyds Banking.

The RBS are working with NatWest and are offering a two year fixed interest rate mortgage at 4.99% with no arrangement fees.

Lloyds are working with Bank of Scotland and the Halifax and their fixed rate for the same period of time is somewhat higher at 5.19% plus a £995 arrangement fee.

These borrowing options joining the scheme has definitely had an effect on the the rest of the loan market not involved with it. More lenders are now offering ninety five per cent mortgages at more competitive interest rates.

If you are looking for this type of loan then it just might be worth looking at some of the examples stated below.

Furness Building Society are displaying a five year fixed at 4.75% with no extra fees for loans of up to half a million pounds. And it doesn't matter if you're a first time buyer or not. However, the difficulty is you must be able to go into one of their eleven offices in person and they are only based in the North West.

Hanley Economic Building Society are offering a two year fixed product at 4.89% with the added fee of £350 for any type of applicant up to four hundred thousand pounds.

Loughborough Building Society will give first time buyers only a five year fixed for 4.99% plus a low arrangement fee of £99 for a more restrictive loan of up to one hundred and fifty thousand pounds.

Yorkshire and Clydesdale Banks show a three year fixed, also for only first time buyers at 4.99% with no arrangement fee, for up to half a million pounds loans.