The most competitive interest rate on a first time buyer mortgage available today is 1.74% by the Chelsea Building Society. It’s a two year fixed rate deal (source

They offer a 60% loan to value (LTV).

The next best is a two year discounted rate of 1.75% by HSBC again in return for a 40% deposit. The Yorkshire Building Society then weigh in at 1.75% with a two year flexi-fix mortgage. Funnily enough, they will only lend 60% of property value too.

And so on and so on.

The average UK house price stands at £162,638 according to the Nationwide. Which means that in order to bag the very best mortgage deal you will need £65,000 cash in order to secure it. Given that’s more than twice the UK average earning, such a sum is pretty much out of reach for almost all those buying their first home.

There are some more attainable loans around to assist your step onto the first rung of the property ladder. But the best interest rate for a first time buyer with a 10% deposit is 3.64% on a ‘stepped’ agreement, again with those adventurous bods at the Chelsea. So that’s a money cost each year of more than twice that of a loan with a largely unachievable deposit level, yet still with the proviso that £16,000 is stumped up.

One doesn’t have to ponder for long to realise that this obstructive behaviour by lenders, not to mention their blatant profiteering, is a key component in ensuring that the housing market stays weak. From suburban semis to mansions, every house seller needs that vital first time buyer at the end of their chain. No first time buyers, no bottom end demand.

With the subsidies that the Government via the Bank of England is now ploughing into enticing banks to lend together with schemes such as First Buy that have been dreamt up to kick start the market, you would think that home loans would be a little less restrictive.

Clearly, the reality in the High Street is somewhat different.

So, we are lobbying Government to start to apply pressure to mortgage lenders with our ‘Maxten’ campaign.

We are starting with an official petition that we have launched on the HM Government website which, if it reaches 100,000 signatures, will compel Parliament to debate a motion that will insist that banks and building societies are made to offer 90% loans to all first time buyers and at properly competitive costs. The market will, it follows, begin to unlock accordingly.

To read more go to

To sign the petition go to

For press enquiries contact Russell Quirk at Emoov Low Cost Online Estate Agents on 0845 260 4950

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