First-time property buyers face a substantial rise in interest rates and mortgage arrangement fees compared with this time last year, according to analysis by the mortgage advice website mform.co.uk. Independent on Sunday

People hoping to buy their first property are struggling to amass the large deposits required as a result of the recent boom in house prices. And where they can't afford to put much money down, the cost of borrowing is both higher and rising. In March 2007, the average interest rate on the top five first-time-buyer mortgages was 5% - compared with 5.8% in March this year.

The study by the website estimates that the average first-time buyer will see their annual mortgage repayments increase by around 16% - almost £1,000 a year.