Despite the prospect of interest rates rising in 2016, the average fixed rates on two, three and five year mortgages are now at their lowest since 2012.
The figures come from a money comparison website which reveals that the average rate on a five-year fixed deal is currently running at 3.45% – it was 4% last year and in 2012 it was 4.67%.
The site also reveals that the average for a two-year fixed mortgage is 2.9% which compares to the 2012 figure of 4.48%.
The website is also advising people who own their home to fix deals while mortgage lenders are still cutting their mortgage rates.
Indeed, the number of 10 year fixed rate products that are on the market has risen from 55 last month to 41 this month.
And despite the Bank of England saying that interest rates look unlikely to rise before the end of next year, one think tank says that they could rise as early as February to 0.5%, their first rise in six years.
Interest rates will have to rise
That’s the view of the National Institute of Economic and Social research which says that interest rates will have to rise to ensure inflation stays at the Bank’s 2% target.
A spokeswoman for the comparison website said: “Mortgage lenders are decreasing their rates after hiking them for the last couple of months.
“And though the Bank of England’s base rate has not risen yet it is a case of when rather than if, so those homeowners looking for a cheap deal should take advantage of current low rates.”
Another financial website has also highlighted that tracker rates for mortgages are also dropping and have fallen below 2%.
This is, they claim, the first time on record that the rate has dropped below this level.
An average two-year tracker mortgage can now be found at the record low of 1.98% which is down from October’s tracker rate of 2.05%.
New bridging loan firm announces strong performance
Meanwhile, a new buy to let specialist lender has revealed strong year-to-date performance figures after recording £800 million worth of buy to let business.
Fleet Mortgages says it has passed its annual target of £450 million of lending and its target for 2016 has now been set at £750 million.
In the third quarter of 2015 they saw a 55% rise on the previous quarter and applications for standard buy to let products accounted for 50% of that demand.
Limited companies wanting a bridging loan accounted for 25% and HMO businesses accounted for the remainder.
Fleet Mortgages says there’s been a significant rise in limited companies making enquiries which, they believe, is down to the Government’s Budget move to cut mortgage interest tax relief by 2020.
The firm’s chief executive, Bob Young, said: “We are pleased with how business has progressed and breaking even in less than two months is astonishing.
“We are particularly pleased in the quality of business we are attracting which is higher than we expected.”