Moneyfacts has analysed the cost of mortgage deals and found the cost of the average five-year fixed rate mortgage has fallen significantly over the past year with many providers launching their lowest ever rates.
It found the average five-year fixed rate mortgage is now priced at 3.45%. This is considerably lower than the average two-year fixed rate (3.73%) this time last year.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “In the space of one year borrowers can now secure a five-year fixed rate deal for the same price or lower than its two-year alternative.
“Longer-term fixed rates provide borrowers with extra security, and to be able to secure a five-year fixed deal at two-year prices is unheard of.
“Borrowers coming to the end of their fixed deal or those who are currently sitting on their SVR should seriously consider opting for a new fixed rate now, as rates will inevitably go up at some point in the future.”