I always like to share a little bit of positive news and this time there seems to be some encouragement for first-time buyers.

Typically, new property buyers struggle to get a big deposit and so are at the mercy of interest rates on larger loans – 90%, 95% and so on.

However, this week it seems interest rates on those high loan to value (LTV) mortgages are bucking the trend a little and showing signs of coming down.

Whilst most mortgages have been edging upwards, rates for 95% mortgages have shown a slight fall. On average, a two-year fixed rate on a 95% loan is now 4.06% compared to 4.11% at the start of the month, whilst the average five-year fixed rate is 4.43%, following a 0.06% drop.

Admittedly these are small decreases, but when you are trying to buy your first home, every little helps.

One thing still worth remembering though is that there is a big difference between interest rates for 95% and 90% loans.

By saving that extra 5% towards your deposit you could be saving yourself quite a few pounds.

For example, an average two-year fixed rate mortgage is 2.74%, saving you £141.82 a month compared to a 95% loan.

Who knows how long these low rates of interest will remain, but fears that the rate from the Bank of England might go up some time this summer seem to be receding. The Bank was fearing a shift in inflation, but latest figures showed a slight fall in wage inflation, which should help keep interest rates where they are.

For help on this and all mortgage and insurance matters, do give me a call on 07767 692653.