For those fortunate enough to lay down 25% of the property value, the average two year fixed rate has reduced to 4.11% from 4.37% during the last six months.
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:
“Potential borrowers dreaming of owning their first home will have been pleased with recent reports suggesting a fall in house prices. Mortgage lenders, however, see house prices continuingly falling as a threat and usually review their credit criteria by increasing deposit requirements.
“First time buyer mortgage rates have fallen over the past six months and it is understandable that they are using this as a window of opportunity. The fact remains that lenders will always offer a better rate to borrowers with a bigger deposit.”
“First time buyers currently have to raise an average deposit of £44,030 for their first home. At this level, borrowers must surely be finding themselves reliant on the so-called ‘Bank of Mum and Dad’ to assist with raising funds.”
