The number of potential first time home buyers continues to escalate.  Since many have been forced to look into renting as their first dwelling outside the family home, first timers are stacking up like poker chips waiting for an opportunity to jump onto the property ladder.  The window of opportunity was opened a little wider by the Post Office recently, as the lender cut its rates on a wide range of products targeting the first time buyer group.  The biggest cut in a product came on a three year fixed rate product, now at a 4.75% level.  The previous rate was almost 6%.

The mortgage lender also raised some eyebrows on a related announcement.  They are taking a leave of absence from the still-hot buy to let market.  The firm claims to want to focus its efforts on first time buyers, movers and remortgagers for now.

The Post Office along with other lenders will continue its creative measures in the types of deals department, and for good reason.  The Bank of England base rate is expected to remain at the bottom of the barrel rate of 0.5% until possibly 2013.  The prediction from many is that most of the lenders will also continue on the competitive path attempting to reach those who might be riding the fence about a decision.

Mike Cook, head of mortgages, commented on the category most lenders fit into who are looking at longer term deals, saying: “Many of the five-year fixes that are heavily advertised are only for borrowers with a large 25 per cent to 40 per cent deposit, which excludes many first-time buyers or those moving up the property ladder.”