Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, comments: “Mortgage borrowing has shown yet another year-on-year rise, which is unsurprising considering that rates in the mortgage market are still falling to new all-time lows. For example, the average two-year fixed mortgage rate has decreased from 3.06% to 2.56% in just 12 months, while the average five-year fixed rate has dropped from 3.60% to 3.20% over the same period.

“As a result, it’s little wonder that many borrowers are jumping at the chance to remortgage to a better rate – the average Standard Variable Rate (SVR) currently stands at 4.81%, so by switching to the average two-year fixed rate, remortgagors can potentially save £2,926.32 in the first year*.

“Buy-to-let lending has seen a similar uplift thanks to declining rates, with the average two-year fixed rate for buy-to-let mortgages falling from 3.49% to 3.34% as lenders compete for landlords’ attention before the stamp duty changes take place.

“Mortgage payments are one of the biggest financial outlays a homeowner can have, so it’s a no-brainer to grab a competitive deal while they’re still available – after all, these low rates can only last so long.”

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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