New figures show that an increased number of first-time buyers (FTBs) opted for a tracker-rate mortgage in January.

Estate Agency Andrews has revealed that 35 per cent of all new deals in the month were tracker-rates.

It follows the Bank of England Monetary Policy Committee''s (MPC''s) decision to cut the base rate of interest in December.

The trend towards more people taking out tracker mortgages is expected to continue as the MPC cut rates again in February.

"This second fall in interest rates is a welcome respite for many borrowers who will see repayments on an average 25 year mortgage of £150,000 fall by around £45 per month since the end of last year," said Chris Chapman from Andrews.

"Market confidence has been boosted by the recent base rate cuts which have had a restorative effect on the market overall as buyers become more confident the current trend for reductions will continue as the year progresses," he continued.

The base rate of interest currently sits at 5.25 per cent.