Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, comments: “The cost of the average five-year fixed rate mortgage has fallen significantly over the past year with many providers launching the lowest ever rates.

“With the average five-year fixed rate mortgage priced at 3.45% today, this is considerably lower than what the average two-year fixed rate was offering a year ago (3.73% in May 2014).

“In the space of one year borrowers can now secure a five-year fixed rate deal for the same price or lower than its two-year alternative.

“Longer-term fixed rates provide borrowers with extra security, and to be able to secure a five-year fixed deal at two-year prices is unheard of.

“Borrowers coming to the end of their fixed deal or those who are currently sitting on their SVR should seriously consider opting for a new fixed rate now, as rates will inevitably go up at some point in the future.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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