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Every Friday we take an overview of the mortgage market with industry experts and round up the best rates with Moneyfactscompare.co.uk. Today, we’re focusing on what’s happening for first-time buyers. 

Some of the biggest lenders in the country made cuts this week, which is great news for those hoping to get on the housing ladder. 

Lenders have been coming under pressure to better support first-time buyers and boost the housing market, which relies on them quite heavily. 

Santander reduced rates by up to 0.16%, NatWest by up to 0.15%, Lloyds Bank by up to 0.1%, HSBC by up to 0.17%, Barclays by up to 0.18% and Nationwide Building Society by up to 0.2%.

Week on week, the overall average two- and five-year fixed rates fell to 5.07% and 5.06%, respectively.

Here are the lowest rates on the market… 

As a first-time buyer, you may have already exhausted your savings for a deposit, as well as covering legal fees and removal costs.

It’s important to consider the true cost of any mortgage deal you commit to, so if you are looking to save on the upfront cost of your mortgage, a Best Buy mortgage may be a more cost-effective choice.

Moneyfacts has rounded up the best ones available… 

“First-time buyers remain the lifeblood of the mortgage market, as without them, the housing market could stagnate,” Rachel Springall, finance expert at Moneyfacts, said. 

“It is essential that lenders work hard to support these buyers, to keep the market moving. Thankfully, lenders have been improving their range of deals at higher loan-to-values, and the relaxation of stress tests could now enable first-time buyers to get their first foot on the property ladder.

“New buyers need to seek advice in the first instance to understand the consequences of falling into negative equity if house prices plummet, as this is more of a risk for those borrowing at the highest ends of the loan-to-value spectrum.” 

A recent report from the Intermediary Mortgage Lenders Association found it was likely that interest rates will continue to fall but “not return to the levels seen before 2023”.  

This, coupled with continued healthy wage growth, is likely to bolster affordability in the coming months and years.

Kate Davies, the association’s executive director, said: “Clearly, more action is needed to help first-time buyers. In particular, the loan-to-income flow limit restricting how many mortgages lenders can offer at higher loan-to-income levels is blocking many sensible borrowers from buying their first home.”