Longer-term fixes drop 1% over two years
Moneyfacts said fixed rate deals have been falling steadily for the past couple of years.
“The cost of funding through the swap rate market has also decreased dramatically, causing a knock-on effect of lenders offering low rates on long-term mortgages,” said Louise Holmes, Moneyfacts spokesperson.
“Interest rates are predicted to stay at the historical low of 0.50% for the foreseeable future. Borrowers would be wise to take advantage of the low mortgage rates, however, as lenders will begin increasing product rates once interest rates rise.”