January saw a dramatic 10 per cent drop in the number of first-time buyers across the country after their newfound confidence in Decembers took a sharp knock.
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At the same time, high loan-to-value (LTV) mortgages a well-worn crutch for the average first-time buyer also saw a steep decline to just 8 per cent of the market share.
Commenting on last weeks decision to hold the base rate at 5.25 per cent, Peter Gladdy, director of Mortgages Direct says: As expected, the last interest rate rise has not been good news for first-time buyers who are still having difficulty getting onto the property ladder.
This group is essential for a healthy mortgage industry and another interest rate rise would have been very damaging to the market.
In addition, these times of unsteady interest rates mean that buyers are sticking with fixed rate mortgages, with two-year deals proving particularly popular.
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