Mortgage rates in the UK have dropped to an all-time low, while the range of products available has increased by 37 per cent.
This is according to new research from MoneySupermarket, which found that consumers benefiting from the best deals are those with big deposits, but first-time buyers are also able to take advantage of good rates.
However, it stated the average application fee on fixed-rate products is rising by 17 per cent and tracker products are going up by nine per cent, which means the lowest rate does not always mean the best value mortgage.
Clare Francis, mortgage expert at the price comparison website, said now is a “great time” for mortgage borrowers and since the Bank of England’s Funding for Lending Scheme (FLS) launched last summer, the diversity of mortgage products has improved.
“It’s very easy to be attracted by low headline rates when looking at mortgages, but you must also factor in the fees you’ll be charged to take the mortgage out,” she added.
Recent figures released by the Bank of England revealed the FLS triggered a rise in mortgage loan approvals at the end of 2012.
