Data collected by Moneyfacts shows that fixed rate mortgage deals at the highest tiers are at record lows, with competition in choice fierce.
While the average two-year fixed rate at 95 per cent LTV has fallen, the number of fixed rate products at 90 per cent LTV is at the highest recorded.
Moneyfacts reports that the average two-year fixed rate mortgage at 95 per cent LTV has fallen 0.61 per cent over the last 12 months, despite the Bank of England increasing the base rate by 0.25 per cent back in August.
This means that the average two-year fixed mortgage rate has decreased from 6.52 per cent to 3.54 per cent in the last 10 years. In the same time frame, the number of products has increased from 17 to 304.
The number of products with a 90 per cent LTV, meanwhile, has increased from 102 to 656, with the average two-year rate dropping from 6.53 per cent to 2.70 per cent since 2008.
Moneyfacts finance expert Darren Cook says: “It is encouraging to see that potential new homeowners have a greater number of mortgage options available at the higher LTV tiers, as well as lower initial interest rates in the two-year fixed sector, to choose from.
“The higher LTV market looks to be showing healthy competition between providers as they vie for FTBs’ attention, however this seems to be moving in a completely different direction to the tiers that call on much larger deposits or require a greater portion of equity.
“Prospective FTBs should start to consider their options and make a comparison of mortgage products that may best suit their requirements.”