Throughout Germany, part of its 95 percent loan-to-value mortgages has been cut by half a percent to attract the growing number of first-time buyers.

Despite multiple interest rate hikes, housing shortages, real estate price fall forecasts and Brexit insecurity, the number of people buying houses for the first time is rising.

Last year, nearly half of all mortgage-financed home purchases were made by first-time buyers, the highest level since 1996.

However, since 1996, wages have increased by 22 percent, while house prices have risen by 152 percent. This means that the average real estate price for first-time buyers will increase to £ 209,000 and average deposits will reach £ 33,1272.

95% mortgages have never been lower, which makes it easier for first-time buyers to lend them

95% mortgages have never been lower, which makes it easier for first-time buyers to lend them

95% mortgages have never been lower, which makes it easier for first-time buyers to lend them

For those who can not rely on mum and dad's bank to increase their deposit, it can be difficult outside.

However, there is a growing list of cheaper and cheaper options: mortgage lenders lower interest rates on individuals with a 5 percent deposit to the lowest level ever recorded.

The average two-year fixed rate loan-to-value mortgage of 95 percent is now 3.72 percent, compared to 4.21 percent a year earlier, according to Moneyfacts.

The average five-year fixed-rate loan-to-value mortgage of 95 percent now stands at 4.06 percent after 4.50 percent in October last year.

The choices available for this type of mortgage loan are also growing – the number of transactions has risen from 319 in October last year to 335.

Charlotte Nelson, mortgage expert at Moneyfacts, said: "The 95-percent lending market is currently experiencing a boom not just with more products on the market, but also with lower and lower mortgage rates.

"Suppliers want to show that they are ready to provide loans to this group of borrowers not just for the positive message, but also to renew their mortgage books.

"With declining mortgage rates, borrowers looking for a 95% LTV mortgage will have a great opportunity to get a better deal than ever before."

The number of 100% lending transactions increased in the past year
October 17th April 18th October 18th
Fixed for an average of two years (95 percent) 4.21 4:01 3.72
Average of five years (95 percent) 4.50 4.44 4.06
Number of products at 95 percent 319 291 335

The youngest lender to lower interest rates nationwide the 95 percent loan rates dropped by up to 0.50 percent.

Bausparkasse's two-year tracker prices start at £ 2.99 (£ 999) and 3.39% (no charge). This corresponds to a decrease of 0.50%.

The three- and five-year fixed rate at 95 percent LTV has also been lowered. The three-year fixed rate started at 3.59 percent with a charge of £ 999 and 3.89 percent without charge, while the five-year fix was 3.74 percent with a charge of £ 999 and 3.94 percent no charge ,

At the same time, the maximum loan size at 95 percent LTV for all home-buying transactions has been increased from £ 350,000 to £ 500,000, including first-time buyers.

Nationwide's director of mortgages, Henry Jordan, said, "The changes announced today will provide competitive pricing for low-paid individuals, especially to help first-time buyers and those living in areas with higher property values."

Mortgage valuations are free of charge. First time buyers will receive a refund of £ 500 to cut costs. Anyone who returns to the company can choose between 500 cashback or free standard credits.

Although Nationwide fares are low, there are a few cheaper deals. The Nottingham Building Society has a two-year fix of 2.94 percent with a charge of £ 999, while Halifax's deal starts at 2.95 percent with a charge of £ 1199.

At fixes for five years, the digital provider Atom Bank has a fixed price for five years at 3.44 percent and a charge of £ 220, while the Monmouthshire Building Society has a fixed rate for five years at 3.48 percent at £ 250 cashback.

With a mortgage of GBP 190,000 over 25 years, a two-year contract by Nationwide would result in a total interest charge of £ 81,003 and a monthly repayment of £ 900.

Prices for the Nationwide Building Society's two-year tracker, starting at £ 999, start at 2.99 percent

Prices for the Nationwide Building Society's two-year tracker, starting at £ 999, start at 2.99 percent

Prices for the Nationwide Building Society's two-year tracker start at 2.99 percent. The fee is 999 GBP

By comparison, Nottingham's deal would result in interest payments of £ 79,524 and monthly repayments of £ 895 at the same mortgage conditions – a saving of £ 5 a month.

If Nationwide had fixed a £ 190,000 mortgage over 25 years for five years, this would result in interest repayments totaling £ 103,743 and monthly repayments of £ 976, while Atom Bank's five-year deal would total £ 93,744 and monthly repayments in GBP would cost 945 per month.

For those who want a variable interest rate, the Skipton Building Society will offer a base price plus 2.24 percent for two years, currently at 2.99 percent, with no charge. This would mean a £ 190,000 mortgage repayment over £ 25,000 over a 25-year period and £ 900 monthly installments.

The Leek United Building Society offers a 2.95 percent discount for two years, currently at 2.74 percent with a cashback of £ 500.

With the same mortgage terms, this would result in a total interest repayment of £ 78,320 and a monthly repayment of £ 895.

If you are not sure whether a fixed rate or a variable rate mortgage is right for you, click here for an overview of the pros and cons of each.

Charlotte Nelson said: "Nationwide Building Society's 2.99% two-year tracker series is improving its position within its sector and is among the lowest deals in the sector.

"This is probably a good option for borrowers who want to keep their monthly repayments low, but since this product tracks the base rate, the interest rate may rise as the base rate rises."

You can use This Is Money's mortgage terminal to search for similar or cheaper deals and calculate the actual cost of a mortgage with our new and improved mortgage calculator.

You can also click here to find an independent financial adviser in your area.

You can now buy a house for only £ 10,000 – but is that a good idea?

With a 95 percent mortgage, first time buyers who are able to pass mortgage affordability tests could deposit 5 percent of £ 10,000 and buy a £ 200,000 home.

But is that a good idea? Did not small depot mortgages crash the economy a decade ago? Do not you rely heavily on falling house prices?

In this podcast, we explore the world of home buying with a small deposit mortgage, the destruction of myths and the consideration of benefits and risks.

Press play to listen to the show above, or listen (and subscribe to the podcast on Apple Podcasts, Acast, and Audioboom).


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