Fixed rates come down further

Commenting, he said: "The raft of fixed rate reductions being made across the mortgage market this week are undoubtedly going to be a welcome Christmas present for anyone who has been holding out for a fixed rate deal. It should provide some welcome Christmas cheer for those first time buyers who need the security of a fixed rate, as well as for those borrowers who have been sitting on their lender's standard variable rate, waiting for the right deal to lock into. Despite these cuts however, tracker mortgages are still looking more attractive overall."

For anyone looking for a high value loan, particularly one into seven figures, John Charcol is currently offering a purchase only 2 year Fixed Rate Shared Exclusive with RBS at 3.19%, for a maximum 60% LTV up to £2million with a £2,499 fee. For anyone looking for a smaller, but longer term deal, Newcastle Building Society has a 3 year fixed at 4.40% to 80% LTV with £1,094 Fee and a 5 Year Fixed 4.89% to 80% LTV with £588 fee.

Wotherspoon continued, "However, a note of caution. Rates are undoubtedly going to have to increase at some point in the future, so picking the right length of term for a new mortgage is as important as getting the best rate you can. Coming out of a fixed rate at the wrong time could be costly. As ever, borrowers would be well advised to seek independent advice on their own specific situation before committing to a rate."