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Best 10% deposit mortgages: What are the top rates for first-time buyers?

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Mortgages needing 10 per cent deposits are continuing to return to the market, in a welcome move for first-time buyers.

Lenders have launched 117 new products since the beginning of the year, and 29 in the first two weeks of February alone, according to information website Moneyfacts.

These lower-deposit mortgages are popular with first-time buyers, but are also used by homeowners who have low equity for other reasons.  

Mortgages with 10 per cent deposits are most often used by first-time buyers

Mortgages with 10 per cent deposits are most often used by first-time buyers

There are now 277 10 per cent products on the market, which is still far lower than than the 776 that were on offer a year ago in February 2020.

However, it is a big improvement compared with the 44 deals that were available in September 2020.

Most lenders withdrew their higher loan-to-value mortgages from the market around the time of the first national lockdown in mid-2020.

They cited worries about their capacity to deal with new applications when staff were working from home as the main reason, however there would also have been concerns about changes to people’s financial circumstances and the risk of negative equity.

Five new lenders have entered or re-entered the market since the beginning of this month, and 15 if you count both January and February.

First-time buyers with a 10 per cent deposit will also find more cashback offers on the market today, rising from 50 to 83 over the past month, available from 17 lenders compared to 12 in January. 

It is not all good news for those trying to get on the property ladder, though. 

While lenders have been slowly reducing their rates since they re-entered the market, they remain relatively high compared to other products in the market, as well as to 10 per cent mortgage rates pre-pandemic.

The average two-year fixed rate mortgage with a 10 per cent deposit now has an interest rate of 3.56 per cent, almost one percentage point more than in February 2020. 

While the five-year fixed rate equivalent at 3.68 per cent has dropped by 0.04 per cent since the start of the month, it is also 0.77 per cent above the February 2020 rate.

In contrast, those with 40 per cent deposits are currently enjoying rates of less than 1.2 per cent. 

And while the outlook is improving for those with 10 per cent deposits, there are still few mortgages available for first-time buyers with only five per cent to pay up front.

There are some products on the market, but most are only open to existing borrowers looking to remortgage, or require a guarantor.

Mortgage products available. Figures apply to first day of the month unless otherwise stated

Mortgage products available. Figures apply to first day of the month unless otherwise stated

Eleanor Williams, finance expert at Moneyfacts, said: ‘While average rates – historically often higher than those available in lower LTV brackets due to risk – are above where they were a year ago, those for whom the longer-term stability of a five-year fixed may suit their circumstances may be pleased to note this rate has reduced 0.04 per cent since the start of this month alone.

‘There are of course still hurdles for these borrowers to overcome. House prices inflated quite significantly last year – although early indications are this may be slowing in 2021 – and savings rates have continued to descend to rock bottom lows, making building a larger deposit difficult, as have high rental payments. 

‘But their options have been steadily increasing, and added to the news that the homebuyers using the current Help to Buy equity loan scheme have a further extension on the deadline for completions, there is hope that 2021 may see more potential home-buyers take that first step onto the property ladder.’ 

The best low deposit rates

Here are some of the best rates currently available to those with a 10 per cent deposit:    

Lloyds has a two-year fixed rate of 3.39 per cent with no fee. 

HSBC  has a two-year fixed rate of 3.44 per cent with no fee.   

Natwest has a two-year fixed rate of 3.48 per cent with no fee.  

Platform has a two-year fixed rate of 3.19 per cent with a £749 fee.  

Use our calculator to weigh up fees versus rates and find the best deal

HSBC accepting bonuses as income for applications 

In further evidence that mortgage providers are gradually broadening their horizons, HSBC said yesterday that it would begin accepting commission and bonuses as a valid form of income in mortgage applications again.

The lender made changes to its variable pay policy to allow income from commission and overtime, in addition to quarterly, half-yearly or annual bonus payments, to be used to support mortgage affordability. 

However, the most recent payment must have been received in 2021.

Michelle Andrews, HSBC UK’s head of buying a home, said: ‘We are all looking forward to normality returning, and the inclusion of overtime, commission and bonuses to support a mortgage application is one bit of normality that will be welcomed by many looking to move on to or up the property ladder.’

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

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Green mortgages may leave owners of older homes unable to sell

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Estate agents warn owners of older homes, rural houses and listed properties could struggle to sell under green mortgage plans

  • Boris Johnson has unveiled his plans for turning Britain green by 2050 
  • The plans include proposals on how to make the housing stock greener 
  • The plans would see lenders disclose the energy performance of properties










Homeowners living in older, rural and even listed properties risk being unable to sell if strict green finance targets are introduced, estate agents have warned.

The warning comes after Boris Johnson unveiled his plan for turning Britain green by 2050 this week, with mortgage lenders having targets for the energy performance of properties in their portfolio.

A body that represents estate agents across Britain claimed that the property market could be distorted as a result of the measures and called for Britain’s historic housing stock to be taken into account.

Boris Johnson revealed proposals on how to make the housing stock greener this week

Boris Johnson revealed proposals on how to make the housing stock greener this week

Timothy Douglas, of Propertymark, said: ‘Incentivising green improvements to properties via lending creates risks of trapping homeowners with older properties, those who live in rural areas, listed buildings or conservation areas, making their homes difficult to sell and therefore reducing the value.’

Propertymark said that those living in older properties could be left with homes that they could not sell if buyers were unable to secure finance on them due to their lower energy efficiencies.

The effect would be likely to be felt more by less wealthy owners, as deep-pocketed buyers would be more able to overlook mortgage restrictions and high-end older homes would continue to be desirable.

Mr Douglas said: ‘The use of targets could distort the market and sway lenders towards preferential, newer homes in order to improve the rating of their portfolio.

‘Stopping a large portion of housing stock from being able to enter the market could cause havoc for home buying and selling as well as the wider economy.’ 

He added that improving the energy efficiency of homes should be reliant on consumer choice and not something enforced by mortgage lenders, with all the knock-on effects this could entail.

He said: ‘We would be concerned if lenders raise rates and limit products because fundamentally, improving the energy performance of a property is reliant on consumer choice and it is not the core business of mortgage lenders.’

Mark Harris, of mortgage broker SPF Private Clients, said: ‘The green agenda is not new but there is increasing impetus behind it. There are more green mortgage products aimed at those purchasing more energy-efficient properties – A-C rated, and not just from specialist lenders but the high street banks too.

‘However, there is a real danger that green initiatives could create the next round of mortgage prisoners if homeowners are trapped in older homes that can’t be improved, so they can’t move because they can’t sell them on.

‘Without changes or improvements, lenders may restrict lending to lower loan-to-values, higher pricing, or not lend at all. This could penalise those who are unable to adapt to or adopt new efficient technologies economically.’

A UK Finance spokesperson said: ‘Greening our housing stock is vital if we are to meet our climate change obligations and banks and finance providers are committed to helping achieve this goal and making sure consumers are not left behind.’

Ways to boost energy efficiency  

Propertymark recommends three measures to improve the energy efficiency of homes without negatively impacting the housing market.

1. Improvements linked to an EPC

These include linking a plan for energy efficiency improvements to the recommendations on a property’s Energy Performance Certificate.

It could demonstrate the ‘most suitable route’ to a warmer home, regulatory compliance and zero carbon, according to Propertymark.

2. Tax breaks

It also recommends using tax breaks to incentivise homeowners to finance energy efficiency improvements.

For example, these could include making energy improvements exempt from VAT or offering lower rates of council tax for homes that have been made more energy efficient.

3. Adjustable tax rates

An adjustable rate of property tax that is tied to energy performance is also being recommended by Propertymark.

This could be done in two ways, it suggested. First, by applying the adjustment as a reduction on more energy-efficient properties. And second by offering rebates to buyers if energy efficiency improvements are made to less efficient properties within a certain time period after purchase.

Propertymark said that by linking energy performance with property taxes, this could help introduce increased saleability for more energy-efficient properties. In addition, it suggested that improvements would become standard for homeowners seeking costs and improve the desirability of their homes.

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Johnson rules out face masks as UK’s daily Covid cases rise above 50,000

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Daily coronavirus cases in Britain have risen above 50,000 for the first time since July, but Boris Johnson said he will not bring back compulsory face coverings or introduce vaccine passports.

Speaking in Northern Ireland, the prime minister said his government was holding firm to its policy of no legal restrictions introduced in July, but was watching the numbers carefully.

“The numbers of infections are high but we are within the parameters of what the predictions were,” he said. “We are sticking with our plan.”

Mr Johnson acknowledged the “patchiness” of Britain’s vaccination programme, urging people to come forward for their booster jabs as soon as they are invited to do so. But Labour leader Keir Starmer said the government should beef up the programme, ensure that more children were vaccinated and aim to deliver half a million jabs a day.

“The government said that the vaccine would be the security wall against the virus and now the government is letting that wall crumble,” he said.

“We’ve seen those that most need it not able to get the jab they need. Only, I think, 17 per cent of children have got the vaccine. And the booster programme has slowed down so much that at this rate we’re not going to complete it until spring of next year. So the government needs to change these, it needs to get a grip. I think it needs to drive those numbers up to at least 500,000 vaccines a day.”

Vaccine passports

The British Medical Association (BMA) accused the government of “wilful negligence” in not bringing back some restrictions, and of failing to learn the lessons of a parliamentary report last week about its handling of the pandemic. The association’s chairman, Chaand Nagpaul, said doctors could say categorically that it was time to bring back compulsory face masks and to introduce vaccine passports.

“By the health secretary’s own admission we could soon see 100,000 cases a day, and we now have the same number of weekly Covid deaths as we had during March, when the country was in lockdown,” he said.

“It is, therefore, incredibly concerning that he is not willing to take immediate action to save lives and protect the NHS. ”

Health secretary Sajid Javid warned this week that some restrictions could be introduced if the public failed to exercise caution and to take up vaccination offers. He acknowledged that Conservative MPs could show an example by wearing masks in the House of Commons, but house leader Jacob Rees-Mogg on Thursday rejected the suggestion.

Crowded spaces

“There is no advice to wear face masks in workplaces. The advice on crowded spaces is with crowded spaces with people that you don’t know. We on this side know each other,” he told the SNP’s Pete Wishart.

“Now, it may be that he doesn’t like mixing with his own side, wants to keep himself in his personal bubble. He may find the other members of the SNP – who I normally find extraordinarily charming…but we on this side have a more convivial fraternal spirit, and for our calling the guidance of her majesty’s government.”

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Britney Spears and fiancé Sam Asghari are spotted house hunting at Jeffree Star’s mansion

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Britney Spears and fiancé Sam Asghari have been spotted house hunting – and the $16.5million mansion in the upscale Hidden Hills neighborhood in Calabasas they’re considering belongs to none other than makeup mogul Jeffree Star. 

Britney continues to make strides in regaining her freedom and was seen by DailyMail.com Tuesday arriving at the private entrance to the Hidden Hills estate, only accessible to its A-list residents, including Drake, The Kardashians and Miley Cyrus

Britney, 39, drove her white Mercedes-Benz to the gates while 27-year-old Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse. 

They were greeted by a real estate agent who gave them access, arriving at the property at 2pm and viewing the house for about 35 minutes.

The house, purchased by Jeffree in 2019 for $14.6 million, has seven bedrooms, 13 bathrooms and boasts sweeping views of the Southern California hills. 

DailyMail.com spotted Britney Spears and fiancé Sam Asghari house hunting Tuesday in the upscale Hidden Hills neighborhood in Calabasas, California

DailyMail.com spotted Britney Spears and fiancé Sam Asghari house hunting Tuesday in the upscale Hidden Hills neighborhood in Calabasas, California

Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse

Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse

The house, purchased by Jeffree in 2019 for $14.6 million, has seven bedrooms, 13 Bathrooms and boasts sweeping views of the Southern California hills

The house, purchased by Jeffree in 2019 for $14.6 million, has seven bedrooms, 13 Bathrooms and boasts sweeping views of the Southern California hills

They were greeted by a Real Estate Agent who gave them access, arriving at the property at 2pm and viewing the house for 35 minutes

They were greeted by a Real Estate Agent who gave them access, arriving at the property at 2pm and viewing the house for 35 minutes

Britney drove her white Mercedes-Benz to the gates while Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse

Britney drove her white Mercedes-Benz to the gates while Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse

Britney drove her white Mercedes-Benz to the gates while Sam, dressed in short camo shorts and and a tight-fitted blue t-shirt, got out of the car and went to the gatehouse

Sam, 27, has been by Britney's side throughout her conservatorship battle and as her soon-to-be husband it's only right he accompany her on her house hunting adventures

Sam, 27, has been by Britney’s side throughout her conservatorship battle and as her soon-to-be husband it’s only right he accompany her on her house hunting adventures 

The engaged couple were seen arriving at the private entrance to the Hidden Hills estate only accessible to its A-list residents, including Drake, The Kardashians, Miley Cyrus and Jennifer Lopez

The engaged couple were seen arriving at the private entrance to the Hidden Hills estate only accessible to its A-list residents, including Drake, The Kardashians, Miley Cyrus and Jennifer Lopez

The house hunting comes days after Britney wrote a scathing Instagram caption, in which she told her relatives they should be worried if she ever gives an interview

The house hunting comes days after Britney wrote a scathing Instagram caption, in which she told her relatives they should be worried if she ever gives an interview

The Jeffree Star Cosmetics founder listed his mansion in July this year with plans to move to Wyoming full-time. 

Jeffree Star listed his mansion in July this year with plans to move to Wyoming full-time

Jeffree Star listed his mansion in July this year with plans to move to Wyoming full-time

The YouTuber has had a career embroiled in controversy and made the move to his 70-acre ranch in Wyoming, where he’d already been living part-time, to focus on his mental health.  

‘I need to get away from California and its day-to-day atmosphere,’ he said in a YouTube video. ‘I think I’ve gotten all that I can out of this state.’ 

And while he’s ready to start anew, so is Britney, after her father Jamie was removed as conservator of her multimillion dollar estate  last month. 

According to the listing, the 21,000sqft French Normandy Estate sits on 2.82 acres and is nestled at the end of a quiet cul-de-sac.  

The home boasts ‘superior quality amenities throughout’ which include a home theater with custom seating, large game room with wet bar, two story gym with steam & sauna, complete home spa, and a wine tasting room & refrigerated wine cellar. 

According to the listing, the 21,000 square foot French Normandy Estate sits on 2.82 acres and is nestled at the end of a quiet cul-de-sac

According to the listing, the 21,000 square foot French Normandy Estate sits on 2.82 acres and is nestled at the end of a quiet cul-de-sac

Outside, the grounds feature a sparkling pool, spa, fire pit, two barbecue centers and two covered patios

Outside, the grounds feature a sparkling pool, spa, fire pit, two barbecue centers and two covered patios

A sunken outdoor living room with a fire pit in the middle is surrounded by the luxurious pool and fits at least a dozen guests

A sunken outdoor living room with a fire pit in the middle is surrounded by the luxurious pool and fits at least a dozen guests

The home boasts a  large gourmet kitchen with two islands that opens to the family room, two beautiful custom offices, large game room with wet bar, craft room, home automation system, safe room

The home boasts a  large gourmet kitchen with two islands that opens to the family room, two beautiful custom offices, large game room with wet bar, craft room, home automation system, safe room

The home movie theater is beyond and impressive and perfect for entertaining guests who visit Britney and Sam

The home movie theater is beyond and impressive and perfect for entertaining guests who visit Britney and Sam 

The home has an expansive wine cellar with a two-seater table for any wine-loving connoisseurs to enjoy

The home has an expansive wine cellar with a two-seater table for any wine-loving connoisseurs to enjoy 

The listing states, ‘Additional features include a large gourmet kitchen with two islands that opens to the family room, two beautiful custom offices, large game room with wet bar, craft room, home automation system, safe room, and sculptural glass elevator.’

The main house has five bedroom suits, including the luxurious master suite, perfect for Britney and her new fiancé. 

Outside, the grounds feature a sparkling pool, spa, fire pit, two barbecue centers and two covered patios. 

The house hunting comes days after Britney wrote a scathing Instagram caption, in which she told her relatives they should be worried if she ever gives an interview.

As she continues to adjust to life as a free woman, the star sent a clear message to those who profited from her ‘abusive’ conservatorship, controlled by her father Jamie, for the past 13 years. 

‘Lord have mercy on my family’s souls if I ever do an interview!!!’ she told her more than 35.4 million Instagram followers on Friday. 

The huge mansion even has a sculptural glass elevator to take you between floors

The huge mansion even has a sculptural glass elevator to take you between floors 

The home also offers a 4,700-square-foot underground garage for more than seven cars

The home also offers a 4,700-square-foot underground garage for more than seven cars

The home boasts ‘superior quality & amenities throughout’ which include a home theater with custom seating, large game room with wet bar, two story gym with steam & sauna, complete home spa, and a wine tasting room & refrigerated wine cellar

Huge doors from an elegant seating area lead out into the pool area for indoor and outdoor fun

Huge doors from an elegant seating area lead out into the pool area for indoor and outdoor fun 

An entire area is dedicated to gaming, with classic gaming machines seen in an elegant room with an oversized chandelier

An entire area is dedicated to gaming, with classic gaming machines seen in an elegant room with an oversized chandelier 

If Britney moves to the estate in Hidden Hills, she'll be neighbors with other A-listers the likes of Drake, The Kardashians and Miley Cyrus

If Britney moves to the estate in Hidden Hills, she’ll be neighbors with other A-listers the likes of Drake, The Kardashians and Miley Cyrus 

For more than a year, Britney has been calling for her father to be fired as her conservator and for an end to the conservatorship which she's called 'abusive'

For more than a year, Britney has been calling for her father to be fired as her conservator and for an end to the conservatorship which she’s called ‘abusive’

In addition to stating she is ‘staying clear’ of the entertainment business for now, Britney confessed navigating her independence has been hard. 

‘I’ll just be honest and say I’ve waited so long to be free from the situation I’m in… and now that it’s here I’m scared to do anything because I’m afraid I’ll make a mistake!!’ she said.    

For more than a year, Britney has been calling for her father to be fired as her conservator and for an end to the conservatorship which she’s called ‘abusive.’

She has said that she’s ‘afraid ‘ of her dad and declared that she would not perform again until he was no longer in charge of the conservatorship he’s been overseeing since her much-publicized breakdown in 2008.

One of her most heart-wrenching revelations came during a tearful phone appearance at Judge Penny’s court last June when she said that she wanted to have a baby with her fiancé, personal trainer Sam Asghari, but the strict conservatorship wouldn’t allow her to remove her IUD birth control.

‘I feel ganged up on and bullied and alone,’ Britney told the court during that emotional statement. ‘I just want my life back.’

She also told the judge that she felt ‘enslaved’ by her dad, whom she, added, ‘should be in jail.’

Britney and Sam are looking forward to starting their lives together now that her father Jamie has been removed as conservator of her estate

Sam has spoken out about Britney's conservatorship and denounced her father Jamie's right to control his pop star daughter

Britney and Sam are looking forward to starting their lives together now that her father Jamie has been removed as conservator of her estate  

For more than a year, Britney has been calling for her father to be fired as her conservator and for an end to the conservatorship which she's called 'abusive'

For more than a year, Britney has been calling for her father to be fired as her conservator and for an end to the conservatorship which she’s called ‘abusive’

Fans hold signs that read 'Fry Jamie Fry' and 'I want my life back' outside of the courtroom last month as Jamie was removed as her conservator

Fans hold signs that read ‘Fry Jamie Fry’ and ‘I want my life back’ outside of the courtroom last month as Jamie was removed as her conservator 

Last year, at her father’s request, the conservatorship (the one dealing with Britney’s personal affairs, not the conservatorship controlling her finances) was temporarily transferred from Jamie to her long-time caregiver Jodi Montgomery.

While he blamed his stepping down on health issues, Jamie’s decision came amid accusations that he had gotten into an altercation with Britney’s then 14 year-old son Sean Preston, now 16.

Kevin Federline – Britney’s ex and the father of Sean and his brother Jayden James, 15 – made a police report and took out a restraining order against his former father-in-law after the incident in which, reportedly, a ‘very angry’ Jamie broke down the door of a room Sean had locked himself in and ‘shook’ the frightened teen.

Finally last month, a judge  suspended Jamie as the conservator of Britney’s personal life and $60 million estate after 13 years, appointing accountant John Zabel as a temporary conservator. 

The suspension comes as allegations of his mistreatment of his daughter – including secretly recording her calls and messages – have ramped up the furor over his conservatorship.

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