The average 2-year fixed mortgage rate at 90% LTV is currently 5.39% down from 6.05% from six months ago, and the 5-year fixed mortgage rate is currently 5.87% down from 6.87% from six months ago.
Louise Holmes, spokeswoman for Moneyfacts, said: “Substantial rate reductions in the higher LTV market will be encouraging news for borrowers.
“The availability of higher LTV mortgage products has increased over the past couple of years. Lenders have begun to launch more competitive products to borrowers who during the height of the credit crisis had pretty much given up on the prospect of owning their own property.
“Interest rates are predicted to stay at the historical low of 0.50% for the foreseeable future. Borrowers would be wise, however, to take advantage of low fixed mortgage rates while they can as lenders will increase product rates once interest rates begin to rise.”
