Average 95% LTV rates are the lowest on record, Moneyfacts says.
For a two-year patch, first-time buyers with a down payment of 5% will be able to obtain an average rate of 3.09% and, for a five-year patch, 3.39%.
In December 2019, these rates were 3.25% and 3.57% respectively.
However, the choice of products for this type of mortgage has declined over the same period. As of December 2019, there were 386 two-year fixes on the market. That number has since fallen to 353.
A year ago, there were only eight 95% LTV products to choose from.
The total number of products has now reached 5,315. As Eleanor Williams, Moneyfacts financial expert, explains: “A level not seen since we registered 6,192 products on offer in March 2008.”
She continues: “Availability has now eclipsed that offered before the start 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 on all LTVs increased over the month from 2.29% to 2.34%, as did the average rate for a five-year fix. years – from 2.59% to 2.64%.
Williams says: “It may be that after the end of the stamp duty holiday that had kept the real estate market vibrant for much of 2021, providers are now focusing on attracting business to first-time buyers, who have often been seen as the lifeblood of the housing market.