"This is fantastic news for prospective first-time buyers who have been planning and saving up to get their foot on the property ladder in 2020."
The average two-year fixed rate at 95% LTV has fallen by 0.22% from 3.46% in January to 3.24% today.
The average five-year fixed at 95% LTV fell by 0.31% from 3.86% to 3.55% and the average 10-year fixed at 95% fell by 0.96% from 5.05% to 4.09% during 2019.
Darren Cook, finance expert at Moneyfacts, said: “Those borrowers who can only manage to raise a 5% deposit have seen the max 95% LTV average rate fall significantly for two, five and 10-year fixed deals. This is fantastic news for prospective first-time buyers who have been planning and saving up to get their foot on the property ladder in 2020.
“There has been a concerted drive by mortgage providers during 2019 to try and secure the business of potential first-time buyers, who are the lifeblood of the mortgage and property markets, and it is encouraging to see rates decrease as a result of some healthy competition.
“The largest fall has taken place in the growing 10-year fixed rate market, where the average maximum 95% LTV fell by 0.96% from 5.05% to 4.09% during the year. Decade-long fixed rate mortgages may offer a little more certainty over the longer-term, but first-time buyers must also consider that they may not be able to remortgage down to a lower LTV tier – and in turn access cheaper rates – during a 10-year term."
