Homeowners looking to get the best possible deal should consider fixing their mortgage now whilst providers are cutting rates, according to a comparison website.
MoneySuperMarket reports that average fixed term mortgage rates have crept down to some of their lowest ever levels again, despite speculation of a base rate rise next year.
The average rate for a five-year fixed deal currently stands at 3.45 per cent, while last year it was 4.06 per cent, and in 2012 it was 4.67 per cent.
Shorter term mortgage deals also follow the same pattern, with the average three-year fixed rate coming in at 3.21 per cent on 4th November, compared to a rate of 4.80 per cent in 2012.
Similarly, the average two-year fixed mortgage rate is now 2.90 per cent, whereas it was 4.48 per cent in 2012.
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.
“However, you should never rush into decisions to do with mortgages – after all, for most of us it’s our biggest single spend every month.”
Mr Plant says that before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account.
“Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal,” he added.