The fall in average mortgage rates equates to notable reductions in mortgage costs for those taking out a mortgage today compared to 2009.
David Black, insight analyst for banking at Defaqto, said: “The current economic climate has made it extremely difficult for people to borrow, particularly for first-time buyers.
“However the good news for those that manage to secure a mortgage is that mortgage rates are significantly more favourable now than they were two or so years ago."
Black said that in monetary terms, people borrowing now would pay far less over the initial term of the mortgage than those who took out a similar product in 2009.
“With a 5-year fixed rate mortgage available as low as 3.29%, a 10-year fixed at 3.99% and a lifetime base rate tracker at bank base rate plus 1.99%, there is considerable choice for those with an undemanding loan-to-value requirement,” Black added.
“However it is important to remember that the base rate can only go one way, but the question is when, by how much and how quickly.”
