The research shows that rates started a slow descent shortly after the Government’s Funding for Lending Scheme began last August and have picked up speed with new ‘best ever’ deals coming onto the market almost daily.
Sylvia Waycot, editor at Moneyfacts.co.uk, said: “At last we have some good news to talk about with regards to finance; fixed mortgage rates are coming down.
“Recent criticism levied at banks was that they were offering the best mortgage deals in the less risky 60% loan-to-value tier.
“It is good news on that front too as some very attractive higher LTV loans are at last entering the market.”
Waycot added: “To put the current rates into context if you had opted for a two year fixed in June 1989 you would have paid an average rate of 12.83%. A five year fixed averaged out at 12.85%.”
The average two-year fixed rate is now 4.11% according to Moneyfacts, whilst the average five-year fix is 4.14%.
