Mortgage price war rages on
The average 75% LTV 2-year variable, which stands at just 1.64%, has fallen by more than 40% in the past year.
With 95% LTV deals 2-year fixes average at 4.79%, 5-year fixes stand at 5.07% while 90% LTV 2-year fixes cost 3.79%.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Looking at the Bank’s latest quoted interest rates, there is no sign of any slowdown whatsoever in the mortgage price war.
“Lenders have begun the year with a strong appetite for growth, and newcomers are going head-to-head with established names to launch attractive new deals.
“Rising competition is pushing pricing to new lows and it means consumers can choose from record-breaking fixed rate deals regardless of whether they have a 5%, 10% or 25% deposit.”
To 75% LTV, 2-year fixes cost 2.01%, 3-year fixes are 2.82% and 5-year fixes stand at 3.09%.
Murphy added: “The next six months are shaping up to be the best-ever window to secure a low interest rate if you are looking to buy or remortgage.
“Today’s prices have never been bettered in modern times and given that a base rate rise is inevitable at some point, it is unlikely they will be surpassed in the years ahead.”