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Fixed rate heaven for borrowers

Wednesday 2nd June 2010.

Borrowers are enjoying a fixed rate mortgage boost that’s seeing interest rates fall to their lowest levels for a year as lenders fight to offer increasingly competitive mortgage deals.

Doubts raised by sceptics during the recent general election have done little to dampen the spirits of borrowers who can now enjoy an average two year fixed-rate of just 4.63%. That’s down from a recent high of 5.21% and is now the lowest level since April 2009 according to Moneyfacts.co.uk, the financial information experts.

Three and five year deals have also fallen to 5.34% and 5.85% respectively and, along with the two year fixed-rate deals, will represent a particularly attractive proposition for borrowers on standard variable rates.

Borrowers with smaller deposits are also in line for some good news. As the number of different mortgage products continues to soar, there’s been an increase in deals of 533% year on year for people with only 5% to put down on their new home. The number of 90% loan-to-value mortgages has risen by over 100% during the same period and by 85% for those with a 15% deposit.

Time to take an interest?