Clydesdale and Yorkshire Banks unveil lower rates for first time buyers

Tuesday, 18 October 2011 01:06

Clydesdale and Yorkshire banks have launched a new set of mortgage products for first-time buyers with as little as five per cent deposit.

Customers looking for a loan-to-value (LTV) ratio of 95 per cent can get a fixed-rate deal for three years at rate of 6.12 per cent interest.

Buyers with a ten per cent deposit, meanwhile, can get a similar fixed-interest term at 5.49 per cent.

Helen Adams, managing director of first time buyer website FirstRungNow.com said was "pleased" to see these deals hit the market.

"It's hard for first timers to save for a deposit so a mortgage for those with just five per cent deposit is ideal for now - and the fixed rate for 3 years should give them confidence that their monthly mortgage outgoings won't go up at all in that period," she explained.

Last week, HSBC revealed it has earmarked £250 million to be lent to first-time buyers between now and the end of the year.

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