With falling swap rates realigning the cost of funding vis-a-vis the cost to customers, the market is benefitting from fixed rate cuts of around 0.15 per cent.
Katie Tucker of John Charcol said that Leeds Building Society currently offers the best fixed rate with a two-year fix at 5.25 per cent. This one has a fee of £999, however Tucker advised those with a mortgage of less than £67,500 to look to their 4.99 per cent with a 2 per cent fee.
Trackers have been rising as a result of demand, but most are still good value for borrowers as the Base Rate looks to drop further during 2008.
Lloyds TSB's tracker at 0.62 per cent under bank rate for two years was highlighted as a good deal, with a low pay rate of 4.88 per cent for a 2.5 per cent fee. It offers free valuations, free legals, and no exit fee.
Nationwide was also praised for its two-year tracker at 0.02 per cent above base rate, giving a pay rate of 5.48 per cent for a flat fee of £1,499.
However, Tucker warned that homebuyers looking for new build properties will still need help.
"Properties in many areas are expected to lose value this year, predominantly as a result of the re-adjustment of the overpricing that has occurred over the past few years," she said.
"One of the worst casualties is expected to be new build flats, and consequently this week Accord has joined Mortgages Plc, West Bromwich and Preferred in no longer lending mortgages above 75 per cent on them."
