Many lenders have pulled their best deals since the BofE warned of an interest rate hike l
Mortgage rates for first-time buyers are rising twice as fast as those for other borrowers.
More than 20 banks and building societies have pulled their best mortgages since the Bank of England warned of an interest rate hike last month.
Those with a smaller deposit are worst hit.
The average two-year deal for someone with a 5 per cent deposit has risen by 0.1 percentage points to 4.25 per cent since Bank of England governor Mark Carney warned on September 14 that rates could rise.
This will cost borrowers with a typical £150,000 loan an extra £108 a year in repayments.
By contrast, two-year rates for borrowers with a 40 per cent deposit have risen by 0.03 percentage points to 1.67 per cent, according to data firm moneyfacts.co.uk, adding just £24 a year to the average bill.
Aaron Strutt, of mortgage broker Trinity Financial, says: ‘If you can it’s always worth saving at least a 10 per cent deposit because the rates are usually much lower.’
p.thomas@dailymail.co.uk
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