Family Building Society has cut the interest rates on its three and five-year fixed rate Family Mortgages, as well as its offset and low start mortgages.
The new three-year fixed rate Family Mortgage is 2.99 per cent until 30 November 2019 - down 0.35 per cent from 3.34 per cent - while the five-year fixed rate Family Mortgage is 3.29 per cent until 30 November 2021 - down 0.35 per cent from 3.64 per cent.
The two-year discounted variable rate for the offset mortgage is 2.19 per cent - down 0.20 per cent from 2.39 per cent.
Finally, the average rate for the 90 per cent loan-to-value low start mortgage is 2.99 per cent - down 0.7 per cent from 3.69 per cent - with the five-year stepped fixed rate starting at 0.49 per cent, increasing to 1.49 per cent and then 3.49 per cent.
Keith Barber, director of business development at Family Building Society, said with a shortage of suitable homes in the supply chain, lack of innovation by the mainstream lenders and expensive rates for those with only a 5 per cent deposit, it is tough for first-time buyers to get into a home of their own.
Mr Barber said: “These reduced rates make our first-time buyer mortgages among the most competitively priced. Indeed, according to Moneyfacts, the new Family Mortgage five-year fixed rate is the lowest available for borrowers seeking a LTV of up to 95 per cent.”
Adviser Verdict
Tony Salentino, a director of mortgage packager Complete FS, said: “It is no surprise that, once again, it is the so-called smaller building societies leading the way in a true effort and commitment to help first-time buyers.
“The offset mortgage also continues to prove popular with intermediaries, pushing the boundaries in innovation and forward thinking.”
peter.walker@ft.com
