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Mortgage rates sink to seven year low!

Mortgage rates sink to seven year low!

Category: Mortgages

Updated: 22/06/2010
First Published: 22/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Homeowners have a real reason to celebrate after it was revealed mortgage rates had dropped to a seven year low.

The latest research from Moneyfacts.co.uk found that the average rate on a two year fixed rate mortgage deal had fallen to 4.52%, its lowest level since September 2003.

The cost of fixed rate mortgage deals has been falling since September last year, as lenders have tried to tempt borrowers away from record low standard variable rates (SVRs).

"Many borrowers are opting to remain on record low SVRs and overpaying their mortgage rather than secure a new deal at a higher rate," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"Lenders are trying to incentivise borrowers onto new fixed rate deals by making significant cuts to rates.

"Previously, only deals for borrowers with large deposits were seeing cuts, but as the market improves borrowers with smaller deposits are being offered more competitive deals too."

Amongst the best two year fixed rate mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.

Yorkshire BS also offers a two year fixed rate mortgage deal at 3.05%.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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