Mortgage rates have HALVED since the financial crisis, new report reveals

Mortgage rates have nearly halved since the financial crisis, according to a new report from Moneyfacts.

Its mortgage trend found the average two-year fixed rate home loan has fallen from 4.79 per cent in March 2009 to 2.49 per cent today. 

Similarly, the average five-year fix has dropped by 2.73 percentage points.

Big falls: The typical two-year fix has fallen from 4.79% in March 2009 to 2.49% today Average two-year fixed rates dropped considerably over the past few years to 2.49 per cent Average two-year fixed rates dropped considerably over the past few years to 2.49 per cent

Average two-year fixed rates dropped considerably over the past few years to 2.49 per cent

What are the top deals at the moment?

In the two-year fixed rate range Santander has a 60 per cent loan-to-value deal at 1.36 per cent with a £1,499 fee, while Lloyds Bank has a 60 per cent loan-to-value deal at 1.43 per cent with a £999 fee.

For those looking to lock in for a bit longer can get a five year fix from Skipton at 60 per cent loan-to-value at 1.83 per cent with a £1,995 schemes fee. 

HSBC offers a similar deal at 60 per cent loan-to-value with a fee of £999 and a rate of 1.84 per cent.

First time buyers with smaller deposits can benefit from some historically cheap deals. 

For example, The Loughborough Building Society has a 95 per cent two-year fixed rate deal at 2.79 per cent with a £1,219 fee, while Hanley has a 95 per cent loan-to-value deal with a fee of £250 and a fee of 2.85 per cent.

You can find the best deals out there for yourself by using This is Money and L&C’s mortgage finding tool, while checking the true costs of every deal with This is Money’s new and improved true costs mortgage calculator.