However, 29% of brokers disagree, while 15% remain uncertain whether now is a good time to fix, given that interest rates could continue to fall.
In his blog on the international debt crisis impacting fixed rates, John Charcol senior technical manager Ray Boulger highlighted that the financial crises have pushed gilts, which determine fixed rate pricing, to an all-time low leading to increasingly competitive deals.
Martin Wade, director of Your Mortgage decisions, said that, while fixed rates are getting better, choosing whether to lock into a fixed rate deal depends on a client’s financial situation.
He said: “If a client decides to fix for under 3.50% that is a great deal, but it should all be very much down to their circumstances. With Bank base rate unlikely to change in the short term, fixed rates may continue to fall further, especially if the market remains competitive.
“However, for borrowers who know that affordability will become a problem when rates start to rise, they should look to see what kinds of deals are available in the market.”
Earlier this week, financial information firm Moneyfacts reported that the average five-year fixed rate mortgage has dropped below 5% for the first time since it started recording rates in 1988.
The average five-year fixed rate deal currently stands at 4.99%, down from a recent high of 6.24% in September 2009 since base rate fell to 0.5%.