Average fixed rates for two, three and five year mortgages are now at their lowest level since 2012, despite the prospect of a rise in interest rates next year.
According to figures from MoneySuperMarket, the average rate for a five-year fixed deal currently stands at 3.45%, whereas it was 4.0% last year and 4.67% in 2012.
The average two-year fixed mortgage rate is now 2.9%, compared to 4.48% in 2012.
The comparison website advised home owners looking for the best possible deal to consider fixing their mortgage now whilst providers are still cutting rates.
The total number of ten-year fixed rate products on the market currently stands at 41, up from 35 last month.
Interest rates are set to rise in February after six years at 0.5%, according to a think-tank.
The National Institute of Economic and Social Research said yesterday the Bank of England is set to raise interest rates at the start of 2016 to ensure inflation stays at its 2% target.
This contrasts with recent economic forecasts which have suggested an interest rate rise was not on the cards until 2017.
Dan Plant, consumer expert at MoneySuperMarket said: “Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates.
“Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit.”
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