Homeowners have enjoyed another welcome boost after it was revealed the cost of fixed rate mortgage borrowing dropped for the fifth month in a row in December.
According to the latest research from Moneyfacts.co.uk, the average rate on two year fixed rate mortgages fell by 0.11 percentage points last month to stand at 4.88%, the lowest level seen since June last year.
Meanwhile, with base rate once again remaining on hold, the average two year tracker rate also refused to budge far from recent levels, ending the month at 3.76%.
A year earlier, when the base rate had been at 2%, the average tracker rate had stood at 4.45%.
It is thought that lenders have chosen to start reducing rates as conditions in the wider economy continue to improve.
The recent steady rise in house prices and suggestions that the base rate will stay low for the foreseeable future are both likely to have influenced their thinking.
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