The average price of a fixed rate two-year mortgage has now fallen below 3% as rates continue to fall! According to financial information group Moneyfacts, high street branches are still competing heavily against each other, with five lenders offering fixed rate mortgages of less than 1.3%. With the prospect of a rise in the Bank Rate decreasing swap rates have dropped again causing the latest round of cuts. The average cost of a fixed mortgage deal for two years is now on average 2.98%. This is the first time all borrowers now have the chance to capitalise on one of these deals being below 3%, no matter the size of your deposit! If you are able to afford a larger loan-to-value ratio, then those who can deposit 40% will benefit from a 1.99% mortgage rate. These drops in rates are benefitting first-time buyers and those with smaller deposits the most, with the lower loan-to-value ratios dropping the furthest. The impact of zero inflation has caused the Bank of England base rate rise to be put on hold for the time being. Without this concern lenders have been able to offer competitive rates in order to fight for more business. There has never been a better time to take out a mortgage!