There’s a real mixed bag of news when it comes to mortgages at the moment. On the one hand the number of products available for first-time buyers continues to grow and mortgage rates remain low. However, one or two lenders are already starting to increase their lending rates in advance of an expected increase in the base rate.

MoneySupermarket says there are 2,776 mortgage products aimed at first-time buyers. This has been boosted by the Government’s Help to Buy scheme and is almost double the number out there in 2012. At the same time, the average rate on first time buyer mortgages has dropped by one percentage point in the last three years to 3.26%. There’s also a growth in 95% mortgages, with 170 deals currently available. All this looks good, but there are just one or two clouds gathering.

As we go to press, Barclays and Santander are poised to withdraw their best mortgage deals and introduce rate increases, adding to the price of new loans. Earlier this month, Bank of England governor Mark Carney warned that interest rates could be set to rise.

One (or in this case two) swallows, does not a summer make, says the old adage. But the moves by Barclays and Santander is certainly interesting and almost certain to be the start of upward price activity in the lending market and the slow end to the era of super-low mortgage interest rates. With competition fierce within the sector, lenders will be looking to keep their market share and probably won’t all dash to raise rates alarmingly, especially as more and more people are showing a willingness to switch their mortgage provider when they re-mortgage. Shopping around will continue to be the best advice, whether you’re a first-time buyer just taking the plunge or are looking to keep your ongoing payments low. With access to mortgage products from the whole of the market, we are well placed to help, so whatever your circumstances, please get in touch to discuss your mortgage needs.