Fixed rates fall for big deposit borrowers - Mortgages - News - Moneyfacts


Fixed rates fall for big deposit borrowers

Fixed rates fall for big deposit borrowers

Category: Mortgages

Updated: 23/02/2010
First Published: 12/02/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Fixed mortgage rates continue to fall for borrowers with a decent deposit, new research from has revealed.

The average two year fixed rate for a borrower with a 25% deposit now stands at 4.27%, the lowest level since July 2009.

By contrast, the cost of borrowing for those with a small deposit, such as first time buyers, has continued to move in the opposite direction.

Rates for borrowers with only a 10% down payment have been increasing steadily since April last year and now stand at 6.48%, the highest level since December 2008.

Over a term of two years, this means that a borrower with a 10% deposit will pay £4,728 more than one with 25%.

"While lenders are slowly increasing the number of deals available to those with a small deposit, which should be good news for first time buyers, they continue to make them pay a heavy price," said Michelle Slade, spokesperson for

"First time buyers are being offered little incentive to enter the market and there are no real signs of things getting better for them anytime soon."

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