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Best UK Mortgage Loan Options for First-Time Buyers

21/08/2016 admin 0

If you’re in the process of planning your first home purchase, congratulations! There are only a few purchases in life that are worth celebrating and one of which is buying a new home. Unfortunately, buying a home is not as simple as looking for the best design or best location. It gets more complicated once you get to a point where you have to consider financing options.

If you’re like most people who cannot purchase a home upfront with cash then you need a secured loan, specifically a mortgage loan. To save you time and the hassle, we’ve compiled a list of the best mortgage loans for you to check out.

If you’re a first-time buyer looking to borrow £90,000 over a 25-year repayment period repaying capital and interest on a property valued at £160,000, here are your options:

HSBC

If your initial interest rate is fixed at 0.99% for 24 months and the remaining months at a current variable rate of 3.94% then your total mortgage loan payments will amount to £137,088. That’s about £338.78 monthly payments for 24 months and £461 for 276 months.

Yorkshire Building Society

Given the same loan amount of £90,000 at repayment terms of 25 years, you can expect to repay a total of £150,433 for your mortgage loan. This is if the initial interest rate is fixed at 1.19% and the remaining months at a current variable rate of 4.99%. On a monthly basis, you’ll be paying £346.98 for 26 months and £509.46 for 274 months.

Tesco Bank

A little cheaper than Yorkshire Building Society, Tesco Bank offers mortgage loans of £90,000 over a 25-year term at 0.97% for 25 months and the current variable rate at 4.24% for 275 months. Given the rates, you can expect to repay a total of £140,792 inclusive of interest rates, valuation fee, and arrangement fee. This translates to £348.22 per month for 25 months or £475.19 for 275 months.

What-is-a-mortgage-loan

First Direct

Another competitive mortgage loan to consider for first-time buyers is a deal offered by First Direct. With a fixed rate of 1.24% for 24 months and current variable rate of £3.69% for the remaining months, you’ll be paying a total of £134,622 in total. On a monthly basis, you’ll pay £349.05 for 24 months and £450.81 for 276 months.

Barclays

If you can’t settle with the aforementioned mortgage options, there’s still Barclays to check out. With Barclays’ mortgage loan, the rate for the first 24 months is 0.99% while the remaining months is at a current variable rate of 1.99%. This means that you’ll be paying £349.05 for 24 months and £388.71 for 276 months or a total of £116.980 inclusive of all related fees.

Chelsea Building Society

Chelsea Building Society also offers a competitive mortgage loan at fixed rate of £1.26% for the first 26 months and current variable rate of 5.15% for the remaining 274 months. In total, you’ll be paying about £152,489, which is inclusive of £60,869 interest plus valuation fee, arrangement admin fee, and completion. On a monthly basis, you’ll be expected to pay £349.88 for 26 months and £517.42 for 274 months.

The co-operative bank

Another option to consider for first-time home buyers is the co-operative bank who offer loans of £90,000 at initially fixed rate of 1.24% for 24 months and current variable rate of 4.74% for 274 months. By the end of 25 years, you’ll be paying a total of £147,401. That’s about £349.05 for 26 months and £497.93 for 274 months. Total payment is inclusive of interest rates and other related fees.