First-time buyers are not receiving the full benefit from house price falls because of big hikes in mortgage rates for people with small deposits, figures showed yesterday.

The best mortgage deal available for someone with only a 10% deposit has increased by more than 1% during the past year, despite the Bank of England base rate nearly halving from 5.75% to 3% during the same period.

The lowest rate currently available for people with a 10% deposit is a 6.24% variable rate deal from Yorkshire Bank, according to financial information group Moneyfacts.co.uk.

This is more than double the current Bank of England base rate of 3% and well up on the best mortgage available for a borrower with a 40% deposit of 3.99%, offered as a variable rate loan by HSBC and a one-year fixed rate deal by the Woolwich.

The best rate for people who want a fixed rate mortgage on a 90% loan to value ratio is 6.54% for a two-year deal from Britannia Building Society.

These rates for people with small deposits are well up on a market leading fixed rate loan of 5.35% offered by Stroud & Swindon Building Society 12 months ago to people looking to borrow 95% of their home’s value, despite the Bank of England base rate being at 5.75% at the time.

First-time buyers taking out a typical £120,000 mortgage on this deal would have had repayments of £735 a month.