In February average 2-year fixed rates stood at 2.54% and typical 3-year fixes fell to 2.92% – a record low for both.
Short-term fixed rate mortgages reached an all-time low in February, the Mortgage Advice Bureau’s National Mortgage Index has revealed.
In February average 2-year fixed rates stood at 2.54% and typical 3-year fixes fell to 2.92% – a record low for both.
Average 5-year fixes also decreased to 3.25%.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Falling rates are helping to ease the impact of rising house prices on borrowers. Over the past 12 months fixed rates have fallen steadily, meaning borrowers taking out a mortgage today can benefit from lower monthly repayments.
“This is not only good news for prospective homebuyers: existing homeowners can look to take advantage of these low rates by remortgaging to a much better deal, particularly if they are on a poor value standard variable rate.
“Given the current outlook, low mortgage rates look set to stay on the menu for some time. There is an appetite among lenders for business, and consumers are in a good position to reap the benefits of increased competition.”
Borrowers are paying up to £600 less each year compared to February 2015.
