House for sale
Media playback is unsupported on your device
Video

Will new cheap mortgages tempt people into buying?

Measures designed to stimulate the economy have resulted in the cheapest mortgages ever.

The government's Funding for Lending scheme has been harnessed by the state-owned lender RBS to slash the rates it offers, including offering mortgages worth up to 95% of a property's value with rates fixed for five years at 4.79% interest.

HSBC has also offered a cheap five-year fixed rate mortgage at 2.99% but will these offers prompt people into buying homes?

BBC Radio 5 liveWake Up To Money asked Ray Boulger, a senior technical mortgage manager at John Charcol Independent Mortgage Advisors.

To listen to other Radio 5 live interviews, please visit the Best Bits page.