Fixed rate mortgage costs have fallen this week, making them more affordable for those looking to get on or move up the property ladder.
According to mortgage advisors John Charcol, Christmas has come early for borrowers who have been waiting to buy a house until fixed rate mortgages come down in price.
Drew Wotherspoon, spokesperson for John Charcol, 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."
He explained that the lower interest rates on fixed deals will suit those looking for a first time buyer mortgage but need the security of fixed payments that are guaranteed not to rise.
Cheaper rates will also benefit borrowers who have been languishing on their mortgage lenders' standard variable rate, biding their time until a competitive deal came along to entice them into fixing.
But with the base rate still at an all-time low of 0.5 per cent, where it has stood since March, many buyers are still opting for tracker mortgages, Mr Wotherspoon added, which currently still look more attractive overall.
Despite the lower rates, however, Mr Wotherspoon warns caution in picking the right mortgage deal, because the low base rate will not last forever. "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," he said.
"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."
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