Deposit levels affect lenders best mortgage rates.

Lenders best mortgage rates are in general reserved for low risk borrowers with large deposits. In today's lending market this situation is even more apparent as eurozone crisis leads to increased concerns over lending.

With current BoE base rate predictions making an interest rate increase unlikely in the next three to four years, 5 year fixes are proving a popular choice. The Post Office offer a 5 year fix for those with a 10% deposit at 5.39 % and for those with a 25% deposit a much improved rate of 4.19 % is offered, both products have a £999 fee.

Available deposit level is the key to achieving lenders best mortgage rates. A high deposit would be considered as in excess of 25%, a medium deposit 15% to 25% and a small deposit under 15%.

For borrowers in the fortunate position of having a 35% deposit, first direct offer a lifetime tracker at 2.89% plus a £499 fee and for those with a slightly lower 30% HSBC offer a lifetime tracker at 2.99% with a £599.

A deposit of 25% would get you a lifetime tracker mortgage from the Co-op offered fee free at 2.79% and a 20% deposit lifetime tracker deal is offered by HSBC at a rate of 3.29% with a £599 fee.

While large deposits allow access to lenders very cheapest rates there are deals to be had at smaller deposit levels of 5% to 15%. However these can be hard to source and tend to be high in demand therefore the advice of a skilled adviser at Deal Direct can be invaluable in sourcing a deal.

For those with a 15% deposit HSBC have a lifetime tracker at 3.99% which is fee-free, for 10% the lender offers a rate of 4.79% with a £999 fee.

Those with just 5 per cent are recommended to contact Deal Direct who will source lenders best mortgage rates on offer.