Two and five-year fixed rates trimmed back

The average cost of a two-year fixed-rate mortgage fell to a six-and-a-half-year low during February, according to new figures from the Bank of England.

The average rate stood to 3.88%, down from 3.97% a month earlier to a level last seen in July 2003.

Five-year fixed-rates also eased last month, declining to an average 5.49%, down from 5.56% in January, and despite increasing slightly, the average tracker rate stood at 3.69%, or its second lowest level since records began in 1997.

In further encouraging news, the number of mortgage products available has risen to over 2,000 for the first time in more than a year, the Bank reported.

Earlier this week, moneyfacts.co.uk calculated that home buyers with a zero to 40% deposit now have 1,798 mortgage deals to choose from.

According to the financial website the number of home loans on offer has risen 6% in the past month and 68% year-on-year.

Amid the surge, the number of mortgages demanding deposits of 10% to 15% has increased to 489, compared with 258 this time last year.

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