There has never been a better time to get a mortgage as interest rates on mortgages continue to fall.
According to the Bank of England, the average borrower paid 2.41 per cent on a new mortgage in April 2016 compared to 2.64 per cent in April 2015.
There is currently fierce competition between lenders to give the lowest mortgage rates as fewer people are looking to buy property following the introduction of the extra stamp duty surcharge.
Lenders have reported a decline in mortgage lending since the stamp duty deadline on 1 April 2016.
David Hollingworth, associate director at London & Country Mortgages, said: “It’s very competitive out there.
Borrowers are spoilt for choice. But lenders are starting to reach the point where they can’t go much lower.”
Nationwide have cut their rates to 2.64 per cent for tracker mortgages with a 10 per cent deposit and a £999 fee.
Yorkshire Building Society has a 1.14 per cent deal for mortgages with a 35 per cent deposit and a £1,475 fee.
HSBC has a two-year fixed-rate deal set at 1.16 per cent with a £1,499 fee.
Meanwhile, the Post Office offers a two-year fixed-rate deal at 1.05 per cent with a £1,995 fee.
Charlotte Nelson, from financial data firm Moneyfacts, said: “We are seeing the beginnings of a price war. There has never been a better time to take out a mortgage.
“Lenders are competing to offer the cheapest deal and trying to trump each other each week.”