The lowest mortgage rate on the market is a two-year fixed-rate loan, with a 40% deposit at 3.86%, according to the Rightmove weekly mortgage tracker.
This fix is down 9 basis points on a week ago and 60bps on the year.
However, the property website adds that the average two-year fix with a 40% deposit is 4.25%, down a single basis point on last week and 45bps from a year ago.
The average five-year fix with a 40% deposit is 4.18%, down 2bps on the week and 16bps from 12 months earlier.
For smaller deposits, the average two-year fix at 95% loan-to-value is 5.70%, down 3bps on the week and 24bps from a year ago.
The average five-year fix at 95% loan to value is 5.40%, down 3bps on the week and 11bps from 12 months earlier.
Rightmove mortgage expert Matt Smith says: “Average mortgage rates at the top-end of the market have fallen more quickly than for those with the smallest deposits over the past year.
“Someone with a 10% deposit is still looking at an average five-year mortgage rate of 4.91%, only slightly down from 4.99% at this time last year.
“By contrast, today someone with a 40% deposit is now looking at an average 5-year mortgage rate of 4.20%, down from 4.36% — and we are still seeing some products below the 4% mark in this bracket.
“So, while borrowing power has improved for first-time buyers, higher, and slower falling, mortgage rates for those with smaller deposits still stretch affordability.”
NAEA Propertymark president Toby Leek adds: “For those looking to step onto the property ladder for the first time, it is proving increasingly difficult.
The average deposit made by a FTB is now around £50,000 and the age of those entering is continuing to increase.
“Many people are struggling to save just enough to enter the market, however, to be presented with higher rates at a time when other costs are increasing is disheartening and puts further financial pressure on aspiring buyers.”
