Mortgage rates hit 23-year low
Banks are offering first-time buyers the lowest mortgage rates since records began.
Interest rates on two and five-year deals have fallen to a 23-year low, according to the latest figures from the Bank of England.
Someone looking to buy with a 5pc deposit could get a two-year mortgage with an interest rate of 3.33pc, down from 4.02pc a year ago.
For five-year mortgages, the average rate was 3.89pc at the end of October. It was 4.71pc a year before.
Low-deposit mortgages, often popular among first-time buyers, are expensive, meaning that lenders have more scope to cut rates.
Shaun Church of Private Finance, a mortgage broker, said he expected 95pc mortgage rates to fall further.