Mortgage rates for two-year deals peaked at 5.94 per per cent on average in September 2023, rising rapidly from 1.2 per cent just two years before.
There are less 95 per cent LTV deals on the market, and they do generally tend to carry a higher interest rate for repayments than lower LTV deals.
In more good news for first-time buyers, the availability of 95 per cent LTV mortgages also reached a five-year high at the start of the month, according to Moneyfactscompare.co.uk.
Racing to offer the best deals, Barclays and Santander both started offering mortgages at 3.99 per cent interest at the start of the year.
However, following high demand and an unexpected rise in inflation to three per cent, Santander has pulled it’s five-year deal from the market (but is keeping a two-year deal for now).
