MoneySuperMarket is advising homeowners to fix their mortgage now while providers are cutting rates.
The comparison site analysed average fixed term mortgage rates, and found they have gone 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%, while last year it was 4.06%, and in 2012 it was 4.67%.
Shorter term mortgage deals also follow the same pattern, with the average three-year fixed rate coming in at 3.21% today, compared to a rate of 4.80% in 2012. Similarly, the average two-year fixed mortgage rate is now 2.90%, whereas it was 4.48% in 2012.
There are currently 41 10-year fixed rate products on the market, while just last month the total number stood at 35.
Dan Plant, spokesperson 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.”