Everything you need to know about the first time buyers ‘market

First time buyers make up the biggest part of the property market in the UK for first time in 23 years, new research has found. Overall, the number of first time buyers reached 372,000 in 2018, accounting for the majority of home purchases for the first time since 1995, according to the latest Halifax first time buyer review. This is a rise of 2% in the last 12 months, continuing an upward trend over the last seven years. Although growth in 2018 was at a slower rate than 2017 when it was 7.6% and 2016 when it was 9%, first time buyers overall have increased by 92% from an all-time low of 192,300 in 2008.

First time buyers now account for just over 50% of all house purchases with a mortgage, an increase from 38% a decade ago, the research also shows. The average price paid for a typical first home has gone up by 39%, from £153,030 in 2008, to £212,473 in 2018, and the average deposit has increased by 57% from £21,133 to £33,252 over the same period.

Meanwhile, the average deposit put down by a first time buyer was 14% of the purchase price in 2008 at £21,366, jumping to 20% in 2009, the highest over the last decade. In 2018 the average deposit has come down to 15% of the purchase price, although the average property price has continued to increase. First time buyers are putting down an average deposit of £32,841, with those  in London putting down a higher £110,656, while those in Wales are paying the lowest average deposit of £16,449.

Terraced houses, closely followed by semi-detached properties have continued to be the first-time buyer’s home of choice over the past decade, making up 67% of mortgages for first homes in 2018. The average age of a first-time buyer in 2018 has remained at 31, two years older than a decade ago. In London it has grown from 31 to 33 since 2008, the oldest in the UK. The biggest increase in age was in Northern Ireland, up by three years from 28 to 31. New buyers coming on to the ladder are vital for the overall wellbeing of the UK housing market, and the continued growth in first time buyers shows healthy movement in this important area, despite a shortage of homes and the ongoing challenge of raising a deposit.

Last year was the first year that first time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs, such as continued low mortgage rates and stamp duty, are supporting the increasing number of people taking their first step on to the property ladder. On a regional basis, while the numbers of first time buyers have increased nationally, the number of first time buyers in Scotland and Wales has fallen over the last year. London and the South East have seen the fastest rise in average price paid and deposit put down by first time buyers over the last five years. However, the average price paid in London grew only by 1.4% and the deposit fell by 1.4% over the last 12 months. This is in contrast to the 50% growth in first time buyer prices in London in the five years to 2018, compared to growth of 36% nationally.

At Fortitudo we strive in making housing assessable for everyone and create property ownership possible for first-time buyers, the majority of our developments are associated with governments schemes like Help-to-Buy. We believe in giving everyone a chance of owning their dream home.

First time buyers – how much of a deposit do you actually need to get onto the property ladder?

The average first-time buyer deposit was almost £4000 lower in the last financial year, according to a new government housing survey. The question is… could you have saved enough deposit to buy a property without even realising it?

The annual England housing survey revealed the typical deposit paid by first-time buyer in 2017/18 was £44,632, down from £48,591 the year before. This means its fallen by £3,956 or 8.14%. Fortitudo have taken a closer look at how first-time buyers have achieve their home ownership dreams and offers advice of how you can too get yourselves onto the property ladder.

Are things getting better for first-time buyers?

It is becoming increasingly more accessible to first time buyers to get onto the property ladder in the UK. There and now many different government schemes helping thousands to follow their dream of owning their own home. These schemes include Help to Buy equity loan, Shared Ownership and Help to Buy ISA. Furthering this, mortgage rates are falling and mortgage lender is becoming higher, with Banks including Lloyds lending 100% of the property purchase price.

How do first-time buyers buy their home?

More than half (56%) of first-time buyers bought their home jointly with a partner or spouse while 43% bought alone, according to a recent survey. Almost all first-time buyers in England (99%) had a repayment mortgage. Nearly half 46% had a mortgage of 30 years or more, 50% had a deal lasting 20-29 years, while a small proportion 3% had a 1-19 year mortgage. Borrowing for longer can help improve your mortgage chances. By spreading repayments beyond traditional 25 year period you can lower your monthly repayments which can help you meet strict affordability requirements.

First-time buyer have never had it so good

Brexit uncertainty Is making it easier for first-time buyers to get a good deal on a home. House prices have stagnated in some parts of the country, especially in London. The fewer number of buyers around has forced some sellers to accept offers below asking price. As well as taking advantage of the current ‘buyers’ market, first-time buyers can also benefit from historically low interest rates on their mortgage. This has led to monthly mortgage repayments being lower than rent in most of the UK.

Are you ready to buy your first home?

If you’ve started saving for a home and are itching to take that first step onto the property ladder make sure you check out our developments and secure your new home today with a reservation fee for as little £500 for Help to Buy users and £1000 for non-Help to Buy. To see what we have becoming available in 2019 head over to our website.

Now you can get a 100% mortgage for first-time buyers

Britain’s biggest lender Lloyds is to offer 100% mortgages to first-time buyers in return to lending last seen before the financial crash, but theres a catch. The bank will grant the loan on one condition, if the buyer has family that can stand behind the loan. Under the new Lloyds Bank “Lend a Hand” deal, a first-time buyer will be able to borrow up to £500,000 for a new home, without putting down a penny of deposit. The Lloyds move marks a major expansion into the first-time buyer market, as most other mainstream lenders demand a minimum deposit worth 5% of the property purchase price, although Barclays has offered a similar “family springboard “deal. Lloyds has priced the mortgages to uncut the Barclays offer.

Saving for a deposit is usually cited by first-time buyers as the biggest hurdle to home ownership. Lloyds said the average deposit put down by first-time buyers has climbed £33,211, and a staggering £110,182 in London. The Lloyds deal requires that a member of the family, such as a parent, grandparent or close relative, helps out. The bank will only grant the 100% mortgage if the family member puts a sum equal to 10% of the value of the property into a Lloyds saving account.

The deal is structured so that “Bank of Mum and Dad” can help out their children, yet still keep control of their cash savings that they will need later in life, Lloyds will pay what it described as a market-leading interest rate of 2.5% on the money deposited. Vim Maru, group director of Lloyds Banking Group, which also controls Halifax, said: “We are committed to lending £30bn to first-time buyers by 2020 as part of our pledge to help people and communities across Britain Prosper, and ‘Lend a Hand’ is one of the ways we will do this. Vim Maru continued to say “At the heart of this market leading product is helping address the biggest challenge first-time buyers face getting on to the property ladder, whilst rewarding loyal customers in a low-rate environment.

The Lloyds’ mortgage is structured as a three-year fixed rate deal priced at 2.99%. During the three-year period, the family member who has deposited the money with Lloyds cannot access their cash. Initially the deal is available in England and Wales only. The latest mortgage offering comes hard on the heels of a surge in 10-year fixes to beat Brexit uncertainty. Lenders such as First Direct have slashed interest rates on ultra-long term dates as low as 2.44% a year pegged for a decade. But these deals require buyers to put down large deposits, often as much as 40% of the value of the home being bought or re-mortgage.

Lloyds research found that buying their first home remains the number one life goal for people aged 18-35, but half have said that saving for a deposit is the biggest barrier. It also found that 41% of parents said they wanted to help their offspring on the property ladder, but were worried that they would need the money later in life.

5 top tips for buying a property in 2019

If you’ve set your sights on buying the house of your dreams in 2019, you’ll be pleased to hear that current buyers’ market conditions look set to continue for at least another six months. That doesn’t mean you should just sit back and wait for the perfect opportunity to come to you though.

1. Plan for a deposit, even if you don’t have to

According to Rawson Finance, lenders are granting 100% loans in certain circumstances, but smart buyers are putting down deposits anyway. Putting down a deposit is traditionally around 10% of the purchase price, this helps to minimise the risk your bank is taking by granting you a loan. This can have a significant effect not only on their likelihood of granting you finance, but also on the interest rate they’re willing to offer you. Buyers with deposits have been known to qualify for interest rates as much as 2.5% lower than those asking for 100% bonds. That can literally save you hundreds of pounds over the course of a 20 year loan, and turn your investment into a real winner. Once your savings pot is up and running, consider using an online affordability calculator to get an idea of how much you’ll be able to borrow based on your income and outgoings. Although this should be used as a guide, the information will help you focus on properties that are within your range.

2. Don’t forget about the prequalification’s

Before getting a mortgage, you will be credit checked, so now is the time to check your own credit report and ensure all information it contains is accurate and up-to-date. A good credit score can be the deciding factor in not only getting approved for the mortgage, but also the rate you are offered. Plan now to start paying down any outstanding debts, be sure not to miss any agreed payments on utility bills or mobile phone bills, and try to make more than the minimum repayment in the six months before you mortgage application. Competition for specific properties can be fierce at any time, particularly within the popular neighbourhoods and price bands. A good property, for a fair price, will often attract numerous competing offers, regardless of what the broader market is doing. The last thing you want is to find that perfect home and then lose out to another buyer simply because they took the time to get prequalified, and you didn’t.

3. Research affordability hot spots

You may have your heart set on a popular area, but so will many other buyers. On average, new buyers will end up moving 5.2 miles away from where they originally intended. Consider widening the net to make your budget go further, so you can but more space for your money. You could try searching in up and coming areas, which may become future property hotspots, rather than places where property prices have already increased a lot.

4. Play the stamp duty game

Those taking their first steps onto the property ladder have saved £2,300 on average, while those buying in London have seen almost double the discount with a typical saving £4,300. If first time buyers in England keep the costs of property below £300,000, there is no Stamp duty payable. And those buying a starter pad worth between £300,000 and £500,000 get a reduced bill, paying 5% on the remainder above the tax-free amount.

5. Help to Buy

Another popular method for first time buyers getting on the property ladder, is the Governments Help to Buy loan scheme, which will run until 2023. It’s available to homeowners looking to move as well as first time buyers, but only for new build homes. It gives an equity loan that can be used towards buying a property and means new buyers in England may need only 5% per cent deposit to get a good mortgage. With Help to Buy, even if you only have 5% per cent saved, you can get a well-priced mortgage because the Government is effectively guaranteeing the rest of the deposit. There are some limits on the price of the property you can buy and the loan must be used to buy your own home only, not by-to-let. Furthering this you have to get a repayment mortgage not an interest only mortgage.

First time buyers shrug off Brexit as Help to Buy government schemes, Stamp Duty exceptions and cheap mortgage deals boost home buying

A growing number of first-time buyers are shrugging off uncertainty surrounding Brexit and following their dreams, to owning their own home. Help to Buy schemes, stamp duty exemptions and cheap mortgage deals are giving new buyers the boost they need to get on that all-important property ladder. In November, there were 36,200 new first-time buyer mortgages completed marking 5.8% increase from the same point a year earlier UK, according to UK finance. The first-time buyer market is finally booming, with £6 billion lending providers to first time buyers in November alone.

The average loan taken out by first-time buyers in November was £142,000, up from £138,000 in November 2017 and the average first-time buyer is 30 years old with a household income of £42,000. The recent research into the market shows first-time buyer demand and actively has held up surprisingly well, with aspiring buyers clearly not losing the ambition to purchase their own home, despite the Brexit uncertainty. So it could actually be the best time for potential homeowners to make their move, given the strong appetite to lend in this part of the market and there is some very attractive pricing available, with very low interest rates.

These figures show Brexit uncertainty hasn’t prevented first-time buyers from grasping the opportunity to step foot on the housing ladder. The reality is that there are good deals to be had and many first-time buyers are taking advantage of government schemes such as Help to Buy. Introduced in 2013, Help to Buy programs allow first time home buyers to qualify for mortgage loans by making down payments as small as 5%.

Check out our top tips below, so you can join hundreds of first-time buyers jumping on the property ladder this year. 

1. Save long and hard for that deposit If you’re planning to buy a home, you’ll need to save for a deposit. – Open a Help to Buy ISA. As long as you‘re over the age of 16 and have a National Insurance number, you can take advantage of a tax-free savings account aimed specifically at buying your first home. The government will even give you a 25% bonus once you’ve made the purchase .

– Take advantage of stamp duty exception. Being a first-time buyer means the government will wave your tax for purchasing. As long as your property costs less than £300,000, you can save a significant amount. Don’t forget though, you’ll still need to pay solicitors, surveyors and financial advisors.

2. Seek professional financial help advice Buying a property can be very daunting for a first time buyer. It can become quite confusing, so it is highly recommended that you seek expert advice to help you through the process.

– Work out what you can afford to buy. Mortgage advisors are able to tell you how much you can borrow and therefore how much you’ll be able to spend. If you don’t find this out before viewing, you could be looking at properties out of your budget.

– Show vendors and estate agents that you’re ready to buy. If you’ve already understood your options, you’ll appear much more convincing to those selling and lending to you. That means you’ll be much more likely to close a deal when you find the right place for you. – Get certainty from your mortgage lender. Having all your finances set out by an advisor before you approach a lender will better your chance of them offering you a firm mortgage offer.

3. Decide on your monthly mortgage payments Your current situation will determine how much you can afford to pay on your mortgage.

– If your already renting, you will be used to paying out every month. It’s likely that your mortgage payments will be cheaper than what you’re currently paying. As an added bonus though, your payments will help you call the property your own.

– If your living with family, the costs might come as a shock. Its important to make sure you’ll have funds to manage a new monthly expenditure before you go ahead with your purchase.  

4. View lots of properties There’s a lot to consider when it comes to choosing your property. Having an idea of what your after will make your search more efficient.

– Decide what kind of home you would like. Whether it’s having a garden, or driveway, then you need to decide what priorities must be met. Be clear on whats most important to you, so you can shortlist properties accordingly and not waste any time.

– Prepare to be flexible. Its normal to change your preferences once you start visiting properties. Keep an open mind and don’t be deterred if you fall for a place that isnt quite what you were expecting.

– Thinking about renovating. For some, redecorating a property is a chance to make to a home. But you not have the funds or time to do this. Keep in mind the work that will need doing when you view.

5. Make an offer You’ve set priorities, sought financial advice and found your ideal home. Now its time to make an offer.

– Don’t be afraid to haggle. It’s nearly always the case that the price agreed is different from the price advertised. Negotiate with your estate agent and vendor so that you get the best deal possible.

Getting onto the property ladder in 2019

Buying a first home can be as daunting as it is exciting for first-time buyers but there are a number of simple steps people can take to prepare themselves and make the process as smooth as possible. 2019 could be the best year to get onto the property ladder, with some industry experts predicting that Brexit could cause house prices to drop further. So if getting onto the property ladder is your number-one new year’s resolution, read on for our step-by-step guide to the home-buying process, plus links for further information.

Saving for a deposit and other costs

Finding that all-important deposit will be the forefront in first-time buyers’ mind, so setting a savings goal to focus your efforts in the crucial first step in the process. Hopefully as a first time buyer, you’re saving into a Help to Buy ISA or Lifetime ISA, so that you can claim a government bonus of up to 25% when you buy. If you haven’t already, and you want to buy in the next few months, its worth opening a Help to Buy ISA before they’re withdrawn from the market in November 2019. Otherwise, you could opt for a lifetime ISA, but you need to have saved for a year to benefit from the bonus. As well as saving for a deposit, you need to think about the additional costs involved with buying a home, including surveying charges, moving costs and solicitor fees. There is also stamp duty to consider in some cases. First time buyers are exempt from stamp duty on properties up to £300,000 but there are still charges if properties are priced above this threshold, something which is particularly relevant to buyers in London.

Investigate mortgages

A mortgage is a home loan which you pay off gradually each month over the course of a set number of years, known as a mortgage term. Most mortgage lenders will offer you a maximum of between 3 and 4.5 times the combined annual incomes of you and any other people you’re buying with. Speaking to a mortgage broker could help as this will ensure you have access to a broad range of deals. Checking your credit score is a must before considering taking out a mortgage as this will be the deciding factor in whether you are accepted for the loan and what rate you are offered. You should always make sure all the information is accurate and up to date. You can enhance your credit score by paying off an outstanding debts and being meticulous about meeting agreed payments such as utility or mobile phone bills. Also ensue you are making more than the minimum payment on credit cards in the six months prior to your mortgage application.

Choosing the right property

According to the Post Office, three fifths of properties sold in 2018 were in areas affordable for first-time buyers. Understanding the rate at which a property sells in the area you are looking to buy could also help you negotiate on price and also help to plan for additional costs, which has created a rate of sale map to help buyers. Being prepared to compromise is also a vital quality in a successful first-time buyers and, as adjusting your expectations and having a flexible approach is important.

Research the area and start the house hunting

If you don’t already live in the area you’re thinking of buying in, try and stay there for a couple of nights to see if its definetly somewhere you want to live. Test your commute and check out what the atmosphere and noise levels are like at different times of day and night. For many people, the hunt begins with setting up search alerts on a portals such as Rightmove. But while this is a sensible place to start, it shouldn’t be where your research stops. You’ll need to register with estate agents and start going on real-life viewings to really get a feel for the types of homes available for your budget. Contacting local property developers in the area is a great way to get a first look at available property on the market, in the coming months. Buying property from developers not only cuts fees with estate agents, but also allows you to have your home finished personalised to you.

To see what developments we have to offer in 2019, head over to our website.

The Power of Prop Tech 2019: What is it and why does it matter?

Property technology will continue to transform the industry

The UK’s property industry has remained stubbornly resistant to change, even as innovation reshapes entire verticals across the wider economy. Compared with finance or retail, where e-commerce now accounts for around 20% of total UK retail sales, technology-led disruption in the property sector has been marginal. Whilst most of us bank and shop very differently today to how we did just a few a years ago, the fundamentals around buying a house, acquiring a mortgage or renting office space has remained more or less the same. But all of those things are about to change.

Technology has been continuously remapping the way we work in the industry, and we can expect to see this trend continue in 2019. Over recent weeks, we have seen the Property technology innovations make national headlines, with the worlds first AI auctioneer overseeing an online property auction using blockchain to create an electronic audit trail and google making it’s first property tech move outside of the US by investing into UK property management service AskPorter. And its not just google who think that PropTech is a good idea.

Historically the property industry has been slow to embrace technological change. However, attitudes appear to be changing now we are heading into the year of 2019. A survey carried out by Property Week underlines the steady increase in the number of businesses looking to adopt new technology, with 68% of respondents saying they reembrace tech and are ‘willing to innovate and trail new products’. With 67% of property companies saying they believe the investments they have already made in tech have given their business a USP.

Innovative property technologies in the UK Market

1. Move bubble – a collaborative site for property owners, agents and renters

The site’s aim is to champion the renter’s needs and in doing so it’s a collaborative site where owners, agents and renters can work together as individuals to streamline the rental process. There’s a huge shift going on with the younger generation coming onto the market. They’re demanding more simplistic, value adding, mobile, cloud based solutions that enable collaboration between end-users, offering far greater levels of transparency.

2. Virtual View App – the UK’s first mass-market augmented reality property platform

Founded in 2016 out of the startup accelerator Rainmaking Loft, Virtual View App combines digital and printed marketing materials to allow users to access 3D property models and floor-plans, photo galleries and videos by scanning an image. There’s the ability to look at other elements of the property process, such as unique videos to market properties or cloud services that manage rental-related documentation.

3. Splitwise – an app to make shared living simple

In the ‘hassle-free’ space, Splittable claims to “make it easy to split bills and track expenses with your housemates”. This innovative application focuses on making shared living easier by tackling the often tricky subject of bills. Claiming to stop arguments before they start, Splittable makes it simple to split bills flexibly while helping users keep track of house share expenses.

So what does the future hold for property technology?

There is a lot of excitement around property technology both locally and globally. The key for success in property technology both locally and globally. The key for success in the property industry is to continually improve visibility and transparency, and to work hard to empower investors and other stakeholders as part of the value chain. That’s why its extremely important to get comfortable with new technology to make your business flourish, times are changing, and you know what they say, “innovate or die”.

Important things to know about Help to Buy ISAs in 2019

The Help to Buy ISA was launched on the 1st December 2015 and runs until the end of November 2019, with all bonuses having to be claimed by the 1st of December 2030. With just under a year left to open and start saving, now could be a good time to consider one. They offer an alternative to taking out a loan to help fund an initial deposit for your first home along with other benefits, with the way they work and how you can take advantage of them.

How do they work?

Help to Buy ISAs work in a similar way to regular ISAs, the only difference is, the government will top up any contributions made by 25% (up to a limit of £12,000). A minimum amount of £1,6000 is required to qualify for a government bonus and you can start with a deposit of anything up to £1,000. After the initial deposit has been made you can only save up to £200 a month, so you can’t simply transfer £12,000 across, for example. Then when it comes to buying your first home with the ISA, 25% will be added to it as long as its between the minimum and maximum contributions.

Qualifying Criteria

In order to open and use a Help to Buy ISA you simply need to be a first-time buyer over the age of 16. The good news is that they are available to each first-time buyer and not each home, so if you have a partner or want to buy a property for a friend, you can combine savings and get up to £6,000 from the government towards your home. Any home worth under £250,000 (or 450,000 in London) is eligible and it can be used with any mortgage, not just a Help to Buy one.

Limitations to Help to Buy ISAs

Within all the criteria mentioned, there are a few further restrictions. Help to Buy doesn’t work if you are wanting to buy a property overseas or open more than one. Technically you can’t buy a property and rent it out with one, but if your circumstances change and you have to work away, for example, you will be able to rent it out.

Should I open one in 2019

Any first time buyers will be looking into getting a good financial position before purchasing a property by ensuring they fulfil their financial obligations. If you are considering buying a house in the years should seriously consider open one. As long as you meet the qualifying criteria and open one before the 2019 deadline then theres little reason to not open a Help to Buy ISA.

Property to buy: Top saving tips for first-time buyers revealed

PROPERTY TO BUY: Saving for a first home can seem impossible, especially with rising house prices. However, new research has revealed the top saving tips for first-time buyers looking to purchase a new home.

Top tips and tricks for buying a new property

Property to buy is on the minds of many Britons, with many people looking to buy a home for the first time. It’s a long and often difficult journey, with saving for a deposit seeming like an almost impossible task. New research from the Post Office Money has now revealed the easy ways first-time buyers can successfully save for a first home. According to the research it takes first-time buyers four years of adjusting and scrimping to be able to save for their first home, with these tips helping along the way.

Top tips for people saving towards their first home

Cut back on the essentials

According to the Post Office, the easiest (and most common) way people manage to set more money aside when saving for their first home is finding ways to cut down on their day-to-day spending. This could be as simple as switching to supermarket basic brands, comparing energy and mobile providers to see if you they could reduce your their bill or even seeing if it’s possible to reduce their rent by moving to a less expensive property.

Map out a deposit goal and stick to it

This is important particularly if putting aside money with a partner – very few people save without assistance from their loved ones and first-time buyers will often be planning to purchase their home with a partner.

When saving money, be sure to agree on how much both partners can commit to save realistically on a monthly basis and hold each other accountable, so it’s more difficult to splurge.

Look for tools that may help, as there are a range of apps and calculators freely available to help plan a savings journey, such as the Post Office online tool.

Can savings be spread out over a longer period?

If the goal seems out of reach, consider how to reduce the pot needed to save, such as buying a smaller property, looking at a different location or considering no-deposit mortgages.

Have an honest conversation with loved ones about financial support

It’s common for first-time buyers to get some degree of financial support from their families as they attempt to get on the ladder. The research actually showed that more than half will do so as they attempt to pull the money together for their first home. When asking for money, be sure to have an open and honest conversation about the terms of the agreement. If they are providing a gift or a loan and if it’s a loan, be clear on what they expect in terms of regular repayments.

Keep an eye on how affordability shifts and incorporate that into any plan

According to the Post Office, four years is a long time in our uncertain housing market and buyers want to make sure they are aware of how things shift while saving. You also need to keep up to date on all of the government Help-to-buy schemes. Up until 2023 first time buyers participating in the scheme, you only need a 5% deposit, with the government lending 20 % of the costs and the rest is made up with a 75% mortgage. You wont be charged fees on the 20 p% loan for the first five years. See below for all Fortitudo’s developments associated with Help to Buy.

Developments associated with Help to Buy

• The Highlands, Fareham

• West Quay Road, Southampton

• Commercial Road, Poole

• Willow Park, Havant

• Statum, Bournemouth

• Canaway Court Poole

First time buyer mortgage rates fall to a record low

This is why now is the time to buy for first time buyers, the banks in the UK are
making it easier for first-time buyers to get on the property ladder by offering the
lowest mortgage rates since records began in 1995. Interest rates on two and five
year deals have fallen to a twenty three year low, according to the latest Bank of
England figures.

People looking to buy a property with a 5 % deposit and take out a loan for the
remaining 95% could get a two year mortgage with an interest rate of 3.3%, down
from 4.02 % a year ago. For five-year mortgage, the average rate was 3.89% at
the end of October. It was 4.71% in the same month the previous year. Both rates
beat the record lows for each type of mortgage reached a month earlier, at 3.39%
and 3.95% respectively, suggesting that lenders are increasing efforts to push
businesses up. The reason for these rates falling is mainly down to the stiff
competition among leaders in the industry.

Low-deposit mortgages are often popular among first-time buyers, but are usually
more expensive than other property loans, meaning lenders have more scope to
cut rates. Saving up a large deposit typically results in a cheaper mortgage. The
average two-year mortgage rates for a buyer with a 10 % deposit is 2.24%.
Even with cheaper 95% mortgages and exemptions on stamp duty, first time
buyers still need to raise more than £10,000 to put down a 5% deposit on a
typical property. The current lowest rate for a two year fixed mortgage with a 5%
deposit is 2.76%, from Halifax, however this is only available through brokers,
who charge a fee. It is common to see mortgage lenders offer low rates in the
final months of every year in an attempt to hit their end of year targets. However,
it is thought that the current low rates for first-time buyers will continue into
2019.