Those planning to enter the property market have been advised that waiting for prices to fall may be the best option.
Moneyfacts.co.uk noted that house prices have been in decline over the last year and further falls may be to come.
Head of mortgages at the price comparison site Alan Harper explained: "For first-time buyers, falling house prices are a godsend, as up until now many have been priced out of the market."
And he observed that should prices fall further as predicted, borrowers could build up a bigger deposit and therefore benefit from a more competitive deal.
However, Mr Harper added that any such plan represents a gamble, as rates could rise and first-time buyers may find themselves worse off further down the line.
Last week figures from the British Bankers' Association showed that mortgage lending had increased in September, although levels were still lower than at the same time in 2007.
Published on: October 29, 2008