Rates for prospective home owners have tumbled since last summer, despite the 0.25% increase to the Bank of England base rate in November, according to our research.

The typical two-year fixed rate at 95% Loan To Value (LTV) today sits at 4.09% down from 4.24% in July 2017.

Over the same time frame, the average five-year fix at 95% LTV has gone from 4.55% to 4.49%.

We’ve noticed that lenders have started the year with a battle to be seen as the “go-to” lender for first-time buyers, especially at higher loan to values..

This shows some further good news for first time buyers, along with the stamp duty exemption recently announced.  It is exceptionally hard for many young people to get on to the property ladder, especially when rents are so high making savings a large deposit nearly impossible. Anything to save costs has got to be a good thing, and this is allied to more lenders entering, or re-entering, the 95% mortgage market.

The products on offer aren’t just standard products either, with an array of different incentive packages and fees allowing borrowers to tailor their mortgage to their own needs.

Borrowers at 95% LTV could receive over £400 in cashback on a fixed rate deal, which is a welcome boost to those who are cash-strapped.

However, 95% LTV rates are still markedly above that at 90% LTV, with two-year rates in the latter at an average 2.65%.