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.
Those looking to secure their mortgage rate for a more substantial amount of time will find that there are now more deals to choose from. There are currently 41 ten-year fixed rate products on the market – while just last month the total number stood at 35.
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."
