It said that that two and three-year fixed mortgage rates fell to all-time lows of 2.54% and 2.92%, while five-year fixes stood at 3.35%, only just above their record low of 3.24%.
Two-year tracker rates have risen for three consecutive months, although they remain lower than in February 2015 (2.11%).
Overall these cheap rates mean that borrowers are paying up to £600 less each year compared to February 2015, said MAB. A borrower who took out a two-year fixed rate in February 2016 will be paying £53 less a month on average in mortgage repayments compared to a year earlier, equating to an annual saving of £636.
Borrowers with a three or five-year fixed mortgage are now paying £40 less a month – or £480 less annually – compared to February 2015.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Falling rates are helping to ease the impact of rising house prices on borrowers. Over the past 12 months fixed rates have fallen steadily, meaning borrowers taking out a mortgage today can benefit from lower monthly repayments.
“This is not only good news for prospective homebuyers: existing homeowners can look to take advantage of these low rates by remortgaging to a much better deal, particularly if they are on a poor value standard variable rate (SVR).”
Greater choice
Consumers are able to choose from the highest number of mortgage products since March 2008, said the broker.
The total number of mortgage products rose by 3% in February to 17,654 – an annual increase of 36% from 12,940 in February 2015.
Murphy added: “The number of mortgage products available to consumers has grown exponentially over the past 12 months. Competition between lenders is now hotting up ahead of the spring bounce in market activity. This is good news for prospective borrowers, as they are able to choose from a greater range of products tailored to their individual needs.”
