First-time buyers are expected to continue to find it difficult to get financing this year in spite of an increase in the number of cheap deals available to them. There are now 332 deals for those with a 10 % deposit, up from 199 a year ago and 114 two years ago. In spite of this in these experts estimate around half of those who have a 10% deposit and who apply for a loan will be refused. In spite of the fact that high-street banks appear to be encouraging first-time buyers with cash back deals or fee free mortgages, many would-be purchasers are being refused credit if their scores are less than perfect. This can affect anyone who isn't registered to vote or who has never had a credit card. Others are being refused credit because they may have missed one or two payments.

The average rate for a two year fixed mortgage is now 5.51%, down from 6.1% a year ago and 6.48% two years ago. This would mean anyone with an mortgage of £150,000 will be paying around £922 a month, whereas two years ago that figure would have been £1,011. The number of mortgages approved in 2011 was a third less than in 2006, and approval rates are expected to be similar this year. As many of the best deals are being offered by smaller building societies, it's probably worth first-time buyers asking the advice of a broker. The good news for all of us is that economists are predicting the base rate will not increase for another two years.