While the majority of rates in the mortgage market have started to edge up, research from Moneyfacts shows that some higher LTV mortgage rates have actually fallen since the base rate rise.

The average two-year fixed 95% LTV mortgage rate has fallen by 0.12% in just three months to 4.09%. Five-year rates have held more steady, falling from 4.55% in July 2017 to 4.50% in October and to 4.49% today.

Charlotte Nelson, finance expert at Moneyfacts, said: “This is great news for first-time buyers, who often feel they bear the brunt of every negative change in the mortgage market. With the Bank of England increasing the base rate in November, many would have expected inflated rates, particularly for the higher LTVs. In fact, the average two-year fixed 95% LTV mortgage rate has fallen by 0.12% in just three months.”

However, Nelson added: “While rates falling can only be considered a good thing, borrowers will find that high-LTV rates are still significantly higher than the rest of the market. For example, the average two-year fixed rate at 90% stands at 2.65% today – meaning borrowers who are able to save the extra 5% could save a whopping £153.22 a month, or £1,838.65 a year.”