First Time home Buyer Loan Rates

For the first time at home buyers credit rates

Nuclear starts 95% LTV mortgage for first-time buyer The pure digital banking institution Atom has brought a series of only 5% deposit liens for first-time purchasers onto the market. Interest rates on Atom's new 95% LTV subprime loans are fine, but not big: 3.59% for a two-year firmdown, 3.89% for three years or 3.99% for five.

Like all Atom items, you administer the request for a loan using the bank's smart-phone attachment.

However, rather unusually, you can only get a nuclear home loan by going through a real estate agent - which means that you almost certainly have to pick one up and speak to a real estate agent first. Since last year Nuclear has been offering a range of mortgages but this is the first time the company has approached first-time purchasers with a 5% investment.

It has also abolished an earlier £300,000 limit for initial purchasers, and the limit is now 40 years. "These offers will be appealing to first-time purchasers who want to climb the ladder," said Maria Harris of Nuclear. Do you need to get a 95% LTV mortgages?

It is certainly the case that a 5% investment is simpler than saving 10 or 15%, and a 40-year-old has lower than a 25- or 30-year-old one. However, does that mean that a 95% LTV mortage is a good business? 95 percent LTV loans have the lowest interest rates - which over time means you'll pay back tens of millions more in interest.

When you can make a 10% or 15% saving on your investment, you can get a much lower interest on your loan. When you have a 400,000 95% LTV (read: what is LTV?) over 30 year Atom Mortgages, with a two year fix interest of 3.59%, your total amount repayable per month will be £1,589.

Had you lent the same amount over the same period, but with an LTV of 90%, your two-year interest would have been nearer to 2% - equivalent to about £1,300 in cash per month. In just two years you will be paying almost 7,000 more in interest on the 95% nuclear mortgages - so if you can make a bigger down payment (or buy a cheap property!) it can make a big deal in the long run.

Be careful with 40-year old loans too: if you stay with a 40-year old loan for the entire term, they will charge ten thousand more interest than a 25- or 30-year old one. Be sure to adjust your loan every few years when your interest rates expire - and if you can repay your loan early by paying too much, that's even better!

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