Record low fixed-rate mortgages pave the way for first-time buyers

First-time buyers with a 5% deposit ready to purchase their first home are in a prime position as the average rate for a fixed rate mortgage with a 95% loan to value (LTV) is the lowest on record.

According to the latest figures from, the average two-year and five-year fixed rates mortgages at 95% LTV have reached their lowest value since Moneyfacts began recording this data in 2007.

The average two-year fixed rate has fallen a massive 0.22% from 3.95% to 3.73% in just one month, and average five-year fixed rates are down to 4.08%. While many expected rates to increase following the base rate rise, mortgage lenders are unlikely to risk negatively impacting their largest pool of new customers – first-time-buyers.

Moneyfacts figures also show a boom in the number of mortgages specifically targeted at first-time buyers. This month there are 345 mortgages at 95% LTV to choose from, a significant increase on the 120 available back in September 2016.

Lenders compete for first-time buyers

95% LTV borrowers are largely seen as the lifeblood of the market, according to Charlotte Nelson, Moneyfacts finance expert. As the market gets increasingly competitive for this customer base, lenders are working hard to position themselves as the ‘go to’ provider for first-time buyers.

95% mortgages might still be some of the most expensive on the market, but for borrowers that cannot raise a 10% deposit, it doesn’t get much better than this. While rates remain low, they are in a great position to secure a better mortgage deal than ever before.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT