Although the slight fall in average rates, along with the increase in deals to choose from in the market, is good news for borrowers with a small deposit, when taking into account other factors such as rising house prices and the affordability of monthly repayments, could result in those with a small deposit still struggling to buy a home. For example, the average house price now stands at £232,134, which would require a 5% deposit of £11,607 to purchase. A buyer locking into a two year fixed deal at a rate of 4.02% on a 35-year term would have monthly repayments of £1,166.46, while those locking into a five-year deal at a rate of 4.17% on a 25-year term would have monthly repayments of £1,184.82 – borrowers can see how much their mortgage repayments will be using our mortgage repayment calculator. Depending on the income of the household, these repayments may be considered unaffordable by some mortgage lenders.