First-time buyer mortgage rates fall below 4% in the UK.

Several lenders are offering two-year fixed mortgages for first-time buyers below 4%, with the cheapest reported at 3.96% on a 10% deposit; fees and account or postcode restrictions apply.

Mortgage rates for first-time buyers in the UK have fallen below 4 per cent, according to the article. A handful of lenders have launched two-year fixed deals aimed at borrowers with a 10% deposit. The cheapest quoted rate is 3.96%, but offers include differing fees and eligibility conditions. House prices in many areas are flat or falling, and first-time buyer activity has risen recently. Key details: - The article mentions Lloyds Bank offering a two-year fixed mortgage at 3.96% on a 10% deposit, with a £1,199 arrangement fee and a requirement to hold a Club Lloyds account. - Furness Building Society is reported to offer 3.97% with a £749 fee, restricted to postcodes LA, CA, PR and FY. - The article lists Bank of Ireland at 3.99% (with a £1,495 fee and broker application requirement), and notes HSBC, Halifax and Yorkshire Building Society offering 90% loan-to-value deals near the 4% mark. - An example in the article says a couple buying a £250,000 home with a £2,500 deposit would pay about £1,189 per month on the Lloyds deal, as reported. - The article reports that banks have reduced rates since the Bank of England cut the base rate on 18 December and that some lenders have eased stress-testing and lending rules. Summary: Lower headline mortgage rates may make monthly payments more affordable for some first-time buyers and could support rising activity in a slow market. The effective cost varies because of arrangement fees, account requirements and regional restrictions, and the article notes further movement could follow changes in Bank of England guidance. Undetermined at this time.