Looking for a great fixed-rate mortgage deal? When you're a first-time buyer and looking to secure the best mortgage rate possible, it may be tempting to go to the biggest lender you can think of – usually your bank – automatically. But our research into mortgages proves time and again that often it's smaller lenders that offer the very best mortgage rates for first-time buyers.
One particular mortgage deal has caught our attention this week, and it's offered by the Yorkshire Building Society. First-time buyers with a 25 per cent deposit ready should be aware of the excellent 1.5 per cent interest rate offered as fixed for two years on the 75 per cent LTV (loan-to-value) ratio. This mortgage comes with a £1,495 product fee, although the evaluation is free.
You also have the option to take out the two-year 75-per-cent LTV fixed mortgage with a product fee of only £495, but the mortgage rate will be 1.57 per cent. Despite the higher initial fee, the overall cost of the 1.5 per cent mortgage is lower – a 4.1 per cent APRC (total annual cost of the mortgage set against the loan) as opposed to 4.2 per cent if you go for the 1.57 per cent.
Ready to compare more mortgages? Use the Habito comparison tool below.