Cheaper Mortgages Beginning To Appear

Two high street banks have announced best-buy offers on mortgages.

As average mortgage rates continue to fall, Co-operative Financial Services announced a mortgage with a fixed rate of 3.19% over two years.

The loan is available from Co-operative Bank and Britannia for people who have no less than 25% of the value of the house. This deal has a £999 fee.

Co-op also has a mortgage rate of 4.49% for those who need an 85% loan.

Not far behind is a 3.25% tracker being offered by Santander. The firm has reduced several of its mortgage rates by 0.74% for those needing no more than an 80% loan, coming with a £995 fee. A separate two-year fixed rate comes in at 4.95% with the same conditions.

The average fixed-rate mortgage is now at 4.74%, up from 4.88% at the turn of the year. Average two-year trackers are now at 3.65%, down from 3.77%.