Banks offer fresh wave of 5% deposit mortgages

MAJOR banks have unleashed a wave of new 5% deposit mortgages onto the market, as part of a new Government-backed scheme to help first-time buyers and home movers.

Here is a round-up of what some banks have said so far:

● Barclays has two new products under the scheme. It is offering a two-year fixed-rate fee-free deal on loans of between £25,000 and £570,000, with a rate of 3.99%. It is also offering a higher rate of 4.09% for borrowers who want to fix their mortgage for a longer period of five years.

The products are available to the self-employed, who can be first-time buyers or existing home owners, and they can be applied for through a broker or direct with Barclays.

The products are unavailable on new-build properties.

● HSBC UK has unveiled four new products under the scheme, some with a fee and some without. The deals are available to first-time buyers and existing home owners.

They are a two-year fixedrate deal at 3.99% with a

£999 fee, or one for the same period without this fee for a higher rate of 4.29%.

Five-year fixed-rate deals are available at 4.29% with a £999 fee, and 4.49% without this fee.

HSBC said its maximum loan size available through brokers is £500,000.

To qualify, the home must be the only property that mortgage applicants own and it will be their main residence. The property must not be a new-build or part of a shared ownership or shared equity scheme.

● Natwest is offering a twoyear fixed-rate mortgage at 3.90% with no product fee.

It is also offering a five-year fixed rate at 4.04% with no fee.

Its deals are available to first-time buyers and existing home owners. Natwest’s lending criteria will include employed and self-employed.

Properties classed as newbuilds are excluded and the home must be valued at no more than £600,000.

● Santander will offer three deals with no product fee and a free valuation. The three, which are repayment mortgages for houses priced up to £600,000 or flats and leasehold properties up to £400,000, will be available to first-time buyers and movers.

The mortgages will be a twoyear tracker rate at 3.99%, a three-year fixed-rate at 3.99% and a five-year fixed-rate at 4.09%. The products available under the scheme cannot be used on new-build.

Customers can apply with Santander or via a broker.