The Sunday Times - The first-time buyers locked in to high rates
The costs of mortgages for those with small deposits have risen by almost £1,500 in a year, triggering concerns that first-time buyers are locking themselves into pricey deals.
The most expensive mortgages are available to first-time buyers with 5% and 10% deposits. Some of the lenders requested borrowers to take a five-year fix, rather than the more traditional two or three-year deals.
Aaron Strutt, product director at Trinity Financial, told The Sunday Times: “It’s a take-it-or-leave-it situation for many first-time buyers, borrowers have to think twice before locking themselves into costly mortgages, especially if they come with high early repayment charges.”