Bait for first-time buyers

FIRST-TIME buyers who have a 10 per cent deposit are being offered an attractive range of deals from the mortgage lenders. Halifax offers a 6.25 per cent variable rate to first-time buyers who borrow more than pounds 100,000, but only up to a maximum of 90 per cent of the property price.

Also on 90 per cent advances, National & Provincial offers 5.95 per cent, fixed until 1 January 1994. This deal represents N&P's lowest mortgage offer to first-time buyers since 1959.

Woolwich's 7.25 per cent capped rate for first-time buyers is also only available for 90 per cent of the property price. The arrangement fee is pounds 225, and borrowers get free unemployment cover for the first two years.

National Westminster offers a 10-year fixed rate of 8.99 per cent - on 95 per cent advances for first-time buyers and on 90 per cent advances for others. There is a pounds 250 arrangement fee and an early redemption penalty of six months' interest.

On two-year fixed loans, Woolwich offers 7.45 per cent on 90 per cent advances and Abbey National 7.49 per cent on 95 per cent advances. Both have a redemption penalty of three months' interest.

SIX OF THE BEST

----------------------------------------------------------------- Savings ----------------------------------------------------------------- Type Account Term *0% *25% *40% Min pounds GIB Financial Assurance 5 years 6.55 6.55 5.57 5,000 B Soc Cheltenham & Gloucester Instant 10.00 7.50 6.00 25,000 Tessa National Counties BS 5 years 9.60 9.60 9.60 3,000 *Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------- Mortgages Type Source Deal Variable Halifax 7.80% on loans over pounds 100,000 Fixed Birmingham Midshires 7.99% until 1/1/98, fee pounds 295 Capped Woolwich 7.25% for 2 yrs, 1st time buyers only ----------------------------------------------------------------- Source: John Charcol 071-589 2626 -----------------------------------------------------------------