An article for What Mortgage pointed out that mortgage deals aimed at FTBs have seen interest rates fall in recent months as the marketplace has become more competitive.
The news provider cited research from Defaqto, which revealed that there has been an increase in the number of mortgages approved for buyers with small deposits.
What’s more, the average interest rate on a two-year, fixed-rate mortgage with a loan-to-value (LTV) of 95 per cent fell from 3.98 per cent to 3.46 per cent over the past year.
That may not sound like a big drop, but at a time when interest rates are already so low, and when property transactions are for such a large amount, it can make a difference.
The news site also shared figures from the Office for National Statistics, which recently revealed that house price rises have slowed down in the past year as well, with property values climbing by 2.5 per cent in 2018, compared to 2.7 per cent in 2017.
Brian Brown, head of insight at Defaqto, commented: “It looks like the cost of buying a home has just got a bit easier for first-time buyers as prices have finally stopped rising and mortgages are cheap.”
Last month, figures from UK Finance revealed that the number of FTB mortgages issued in November increased by 5.8 per cent year-on-year, indicating that FTBs are taking advantage of current market conditions to get on the property ladder.