The increase could offer good news for the market as it is likely to trigger an increase in the demand for property, although the cost of mortgages remains an issue for some.

The average two-year fixed rate of 3.56% is almost 1% above the same rate a year earlier, and while the five-year fixed rate equivalent at 3.68% has dropped by 0.04% since the start of the month, it is also 0.77% above the February 2020 rate.

But buyers with a 10% deposit will find more cashback offers on the market today, rising from 50 to 83 over the past month, available from 17 lenders compared to 12 in January.

Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “As the stamp duty holiday deadline approaches, RICS latest research indicates that January has seen the first fall in residential activity in seven months. However, first-time buyers who found themselves unable to proceed last year, and who may not be impacted by the end of the stamp duty holiday if they are purchasing below a property value of £300,000, could buck this trend, as there may be good news for those ready to take their first step on the property ladder.

“Options for those with a 10% deposit have improved greatly over recent months, with 15 more providers offering 90% LTV products since the start of this year, and the number of products themselves increasing by 117 since the beginning of January. This means that there is far greater choice for would-be buyers in this area of the market. There are also more cashback deals now available to first-time buyers with a 10% deposit too, increasing to 83 from 50 a month ago.

“While average rates – historically often higher than those available in lower LTV brackets due to risk – are above where they were a year ago, those for whom the longer-term stability of a five-year fixed may suit their circumstances may be pleased to note this rate has reduced 0.04% since the start of this month alone.

“There are of course still hurdles for these borrowers to overcome; house prices inflated quite significantly last year – although early indications are this may be slowing in 2021 – and savings rates have continued to descend to rock bottom lows, making building a larger deposit difficult, as have high rental payments. But their options have been steadily increasing, and added to the news that the homebuyers using the current Help to Buy equity loan scheme have a further extension on the deadline for completions, there is hope that 2021 may see more potential home-buyers take that first step onto the property ladder.”