First-timers should turn to hybrid lending

People looking to purchase their first piece of UK property this year and hoping to get a foot on the ladder would do well to consider taking on a hybrid mortgage if they want to save themselves some money in the long run.

According to one expert in property, the best way to make sure that you are getting the best deal at any time during your mortgage lifespan is by using what is known as a track and fix mortgage.

These deals offer the best of both worlds, as they give you the chance to lock in the rate of interest of your mortgage to protect you from rising interest rates at a later date, but also present an opportunity, if they should drop, to reassess the rate of your mortgage.

Catherine Hearnden, director at MyMortgageDirect, said that this makes hybrid mortgages an "excellent option" for those looking to buy their first properties for sale.

She went on to say that there will be more options available with track and fix mortgages thanks to the fact that more lenders will see them as a viable option in the future.

"I think so, in order to remain competitive. Lenders will still be looking at swap rates for the fixed part [of the deal], so I can't imagine that it is costing them anything. They have just got that little bit of uncertainty now, but that is the same with pricing any mortgage product."

There may be an increase in the number of people looking for such mortgages this year as well, as it was revealed earlier this week that the number of people looking for online advice with regards first-time buyer mortgages was on the increase. Unbiased.co.uk reported that the proportion of enquiries dealing with this kind of product had risen from 36 per cent in December to 41 per cent in January.