Fixed rates could still go lower

Average best buy fixed rate deals are still more expensive than in March this year, according to realpricecomparison.com.

Fixed-rate best buy deals in March, when the Bank of England cut to a historic low of 0.5%, were 4.37% across two, three and five-years compared to 4.9% now.

However, the independent mortgage comparison service says that best-buy variable deals have fallen from 4.4% in March to 3.4% now for borrowers with a deposit of 25%.

Its analysis shows the cheapest fixed rate deals were available in May and June with average two year deals hitting a low of 3.52% while three-year deals were at their lowest in June at 4.02%. The rates on five-year deals have consistently crept up since March.

Francis Ghiloni, commercial director at realpricecomparison.com said: “The recent round of rate-cutting is very welcome as it confirms that lenders are now starting to compete again on price.