Mortgage costs 'getting cheaper'
Competition among mortgage lenders has intensified, brokers say, with a greater willingness to lend to those without huge savings.
Brokers say that, in recent years, the best deals were only available to those offering a large deposit, but there were now signs of change.
However, a new record rate five-year mortgage, newly on sale, still requires a 40% deposit.
The HSBC mortgage, with a rate of 1.99%, also comes with a £1,499 fee.
'New territory'
Earlier this month, lenders told the Bank of England that demand for new mortgages had fallen for a third successive quarter.
The bank's Credit Conditions Survey found that demand for mortgages for high-value property saw the biggest fall since the third quarter of 2008.
Having been concentrated on this market, there are now signals that banks and building societies are casting their net a little wider.
The survey found that lenders were showing a greater willingness to lend to borrowers who were only able to offer a deposit of less than 10% of the property's value so far this year.
"The lenders are stepping up the fight to attract new borrowers and rates are still getting cheaper," said Aaron Strutt, of broker Trinity Financial.
"First-time buyers with a 5% deposit can take a fixed rate just over 4% and if they can raise a 10% deposit the rates are as low as 2.69%.
"A few years ago borrowers needed a 40% deposit to access a really good mortgage, but now rates are cheap for most new buyers.
"HSBC's latest fixed rate really takes the mortgage price war into new territory and even cheaper deals may well filter through to the market.