The government needs to provide urgent support for first time buyers in the Spring Budget tomorrow.

This is according to Rightmove’s mortgage expert Matt Smith who argues that although the relative stability of the mortgage market at the start of this year appears to have helped give more movers confidence, demand has been slowest to pick up in the typical first-time buyer homes sector.

“After demonstrating resilience and determination last year, the early signs are that first-time buyers are most in need of some additional support, as mortgage rates have fluctuated over the last few weeks, and prices remain near record levels”.

He added: “Whilst we felt the 99% mortgage scheme idea would have only been able to help a very limited number of future first-time buyers, it could have played a role as part of a broader set of considered measures.

“Even if there is limited news in the Budget tomorrow, we hope that government listen to the growing number of voices calling for a broader review of current regulation, in the context of broader innovation in the market that are all intended to help support first-time buyers get on to the ladder.”

Earlier this week, Mortgage Strategy reported figures from UK Finance showing the number of loans made to FTBs last year fell by 22.4% from 12 months ago, hitting their lowest level since 2013.

MS also highlighted a new report from the Building Societies Association (BSA) which insisted significant changes are required if prospective first-time buyers are going to get on to the property ladder in the current housing market –  without compromising the prospects of future generations of homebuyers.

Some of the changes suggested include changing regulation to allow mortgages to be more flexible. This could include allowing more part-repayment, part-interest only lending – with the flexibility to shift between them over the life of the loan.

Also reviewing the 15% cap on lending at 4.5 times income, including whether it should specifically support first-time buyers.

Average fixed rates

Data from Rightmove shows the

• The average 5-year fixed mortgage rate is now 4.82%, up from 4.58% a year ago
• The average 2-year fixed mortgage rate is now 5.19%, up from 4.95% a year ago
• The average 85% LTV 5-year fixed mortgage rate is now 4.75%, up from 4.62% a year ago
• The average 60% LTV 5-year fixed mortgage rate is now 4.33%, up from 4.22% a year ago

The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,089 per month, up from £1,068 per month a year ago