Mortgage rates at lowest level in a year

27 April 2010

Written by Simon Whittaker.

It may be a good time to take out a buy to let mortgage as average rates are the lowest they have been for 12 months.

According to independent personal finance information provider Moneyfacts, the average two-year fixed rate mortgage currently stands at 4.63 per cent compared to its peak of 5.21 per cent in August 2009.

Research by moneysupermarket found very similar results reporting the average rate for the same mortgage to be 4.62 per cent, a 3.36 per cent drop since April 2008.

Mortgage rates have been falling since the bank base rate was reduced to 0.5 per cent last year.

Moneyfacts has reported there are 2,076 different mortgages available on today's market, the most since December 2008 and 71.1 per cent more than in April 2009 when the figure hit an all-time low.

Michelle Slade, spokesperson for Moneyfacts, said: "Lenders are becoming more active in the mortgage market, which is welcome news for borrowers as increased competition is one of the overriding factors in driving rates downwards."

The research also found that the cost of putting down a deposit has also gone down, with new mortgages asking for less up front.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.