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Buying a home with a 10% deposit now as affordable as it was five years ago
['Ed Magnus', 'Senior This Is Money Reporter']
Money Articles | Mail Online
This assumes that average mortgage rates for 10 per cent deposit loans will settle between 4.25 and 4.5 per cent.
This would represent a dramatic fall from when mortgage payments peaked at close to half of gross monthly income in 2024.
For someone buying a home with a 10 per cent deposit, the lowest mortgage rate widely available deal is a 3.99 per cent two-year with HSBC, with £749 of fees.
The lowest five-year fix for someone buying with a 10 per cent deposit is a 4.1 per cent rate with NatWest, with £745 of fees.
Adam French, head of consumer finance at Moneyfacts, said: 'Mortgage rates are easing, but the era of ever-cheaper borrowing is firmly behind us.