The average rates at 95% LTV are the lowest on record, says Moneyfacts.
For a two-year fix, first-time buyers with a 5% deposit will be able to secure a rate of 3.09% on average and, for a five-year fix, 3.39%.
In December 2019, these rates stood at 3.25% and 3.57%, respectively.
Product choice for this type of mortgage has decreased within the same time span, however. In December 2019 there were 386 two-year fixes on the market. This has since fallen to 353.
One year ago, there were only eight 95% LTV products to choose from.
The total product count has now hit 5,315. As Moneyfacts finance expert Eleanor Williams explains: “a level not reached since we recorded 6,192 products on offer in March 2008.”
She continues: “Availability has now eclipsed that which was offered prior to the onset of the pandemic in March 2020 (5,222) and demonstrates a robust level of recovery in the residential sector.”
Overall, Moneyfacts adds, the average rate for a two-year fix across all LTVs moved up over the month, from 2.29% to 2.34% as did the average rate for a five-year fix – from 2.59% to 2.64%.
Williams says: “It may be that, following the end of the stamp duty holiday which had kept the property market buoyant for much of 2021, providers are now focusing on enticing first-time buyer business, which has often been considered the life blood of the housing market.”