The average cost of two-year fixed-rate home loans in the United Kingdom dropped to a 6½-year low in February, according to new figures released by the Bank of England.
The average rate of fixed mortgages fell from 3.97 percent in January to 3.88 percent, a level last seen in July 2003.
The five-year fixed-rate mortgage also dropped last month, down to 5.49 percent from 5.56 percent a month earlier. While the tracker rate increased slightly, the average rate stood at 3.69 percent, the second lowest level since 1997.
On a positive note, the number of mortgage products has increased to more than 2,000 for the first time in more than a year, said the Bank of England.
Moneyfacts.co.uk had calculated earlier this week that home buyers with zero to 40 percent home loan deposits now have 1,798 mortgage product choices, and according to the website, the number of mortgage products being offered has surged to six percent in the past few months and 68 percent year-on-year.
Despite the increases, the number of home loan deposits of 10 to 15 percent has also increased to 489, compared with 258 last year.