First-time buyers lose out as mortgage rates fall

Despite recent cuts in mortgage rates, first-time buyers are not reaping the benefits. The Bank of England's reduction of the base rate from 5.25% to 5% has led to lower fixed rates, with some lenders offering deals below 4%. However, those with smaller deposits are still facing high rates. Aaron Strutt from Trinity Financial noted: "There has been more of a concentrated effort to reduce rates for borrowers with the biggest deposits." For instance, the best two-year fixed rate for a 5% deposit is 5.45%, while those with a 40% deposit can access rates as low as 4.19%. 

The Sunday Times (25/08/2024)