Mortgage rates lowest since 2007
FIRST-TIME buyers are experiencing some of the lowest mortgage rates on record - despite the recent Bank of England base rate rise, a website has found.
While many first-time buyers may have been worried about the impact of the rising base rate on low-deposit mortgages, Moneyfacts.co.uk said average two and five-year fixed rates for people with only a 5 per cent deposit saved have reached the lowest levels on its records going back to 2007.
But borrowers may need to watch out for any fees that come with these deals – as while rates have fallen, average charges have jumped by over £200 in the past year.
Moneyfacts said the average two-year fix on the market for someone with a 5 per cent deposit now stands at 3.73 per cent, down from 4.16 per cent in September 2017.
For someone with a 5 per cent deposit looking to take out a five-year fixed-rate mortgage, the average rate on offer is 4.08 per cent, compared with 4.5 per cent in September 2017.
Borrowers with 5 per cent deposits may also find they have more choice.
The number of lenders in this sector has jumped by 10 in two years to stand at 58, Moneyfacts said. But it also said the average fee for borrowers with a 5 per cent deposit taking out a fixed deal has increased from £726 a year ago to £936.