Mortgage rates hit record low

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Average rates for two and three-year fixed mortgage deals reached record lows in February, according to the Mortgage Advice Bureau’s latest national mortgage index.

The index shows the average two-year fixed rate fell by 0.02 per cent to 2.54 per cent in the month and the average three-year fixed fell by 9 basis points to 2.92 per cent. The average five-year rate fell 2 basis points to 3.27 per cent.

A year earlier, two-, three- and five-year fixed rates were 3.14 per cent, 3.37 per cent and 3.7 per cent respectively.

The index also shows customers have the widest choice of products since 2008.

A MAB statement says: “Rates have fallen substantially over the past 12 months, and it’s a downward trend that shows little sign of stopping.”

MAB head of lending Brian Murphy says: “Given the current outlook, low mortgage rates look set to stay on the menu for some time. There is an appetite among lenders for business, and consumers are in a good position to reap the benefits of increased competition.”

The statement says: “As competition between lenders hots up, over 70 per cent of mortgages were now sourced by using a broker, emphasising their importance.”