Mortgages only falling 'for those with equity'

Date:Monday 15th February 2010
Author: Susanna Kavka

Mortgage rates are only falling for those who already have equity to invest in their property, has stated.

For prospective buyers with a ten per cent deposit, the average rate of interest is currently 6.48 per cent, the highest it has been since December 2008.

But for someone with a 25 per cent deposit, their average rate is 4.27 per cent, the lowest it has been since July 2009.

Michelle Slade, spokesperson for, stated that someone with a lower deposit ends up paying on average as much as £4,728 more than house buyers with a quarter of their property price in deposit over two years.

"First-time buyers are being offered little incentive to enter the market and there are no real signs of things getting better anytime soon for those with a small deposit," she concluded.

For those who already have a mortgage, moving onto a standard variable rate can offer differing levels of savings to borrowers, recently found, as some institutions have not passed on the full benefit of the 0.5 per cent Bank of England base rate.