You are here: Home - First Time Buyers - News -

Cost of five per cent deposit mortgages hits record low

Written by:
Borrowers looking for a mortgage at 95% of the property's value have seen rates fall and their options rise in the last month
Cost of five per cent deposit mortgages hits record low

The average rates for borrowers with smaller deposits or levels of equity have fallen, according to Moneyfacts.

The financial information provider said that average two- and five-year fixed rates at a high loan-to-value (LTV) of 95% were the lowest ever on its records, at 3.09% and 3.39% respectively.

These five per cent deposit mortgages have fallen for the eighth month in a row.

More mortgage choice

Total product choice in the residential sector has risen to its highest level in over 13 years.

At 5,315, the total number of products available in the residential mortgage sector has risen to the highest on Moneyfacts’ records since March 2008 (6,192) and borrowers now have more choice than they did pre-pandemic.

Eleanor Williams, finance expert at Moneyfacts, said: “We recorded improvements in the level of choice across the majority of the LTV brackets but most markedly at 90% and 95% LTV where the number of products rose by 39 and 37 products respectively this month.

“Due to rising house prices, mortgage affordability concerns and until recently limited product choice and higher rates, taking that first step onto the property ladder may have felt a distant possibility for many, so these positive figures may provide some hope to those who dream of owning their own home.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2021-2022

Read our guide to the best mortgage lenders in the UK

Read More >