1st-time buyers offered lowest interest deals in 23 years

First-time buyers are being offered the lowest mortgage rates since 1995, the year the Bank of England began recording rates.

Figures from the Bank show that interest rates on two- and five-year mortgages deals are at record lows for first-time buyers.

A buyer with a 5 percent deposit can get a two-year mortgage on an interest rate of 3.33 percent, down from 4.02 percent in 2017.

The average rate for five-year deals with a 5 percent deposit is 3.89 percent, a substantial drop on the 4.71 percent on offer in the same month last year.

Many first-time buyers are struggling to put together a deposit and a 5 percent deposit is the minimum most will require to access finance. Anyone who can afford a 10 percent deposit can get a two-year mortgage deal paying 2.24 percent.

According to the Telegraph, the current lowest rate for a two-year fixed deal with a 5 percent deposit is with the Halifax, on a 2.76 percent interest rate.