Mortgage rates 'at lowest level in a year'

Mortgage rates for UK homeowners are at their lowest level in a year, it has been claimed.

According to Moneyfacts.co.uk, the cost of home loan repayments peaked in August last year and has been on a steady decline since then.

At present, the typical two-year fixed-rate product stands at 4.63 per cent, the organisation noted.

It also pointed out that competition between lenders continues to return to the market, with the number of loans available reaching 2,076.

Moneyfacts.co.uk spokeswoman Michelle Slade remarked: "[Firms] have slowly become acclimatised to a new-look mortgage market and continue to take more steps to improve the competitiveness of deals."

She added that banks and building societies are becoming more active in the sector, which is welcome news for borrowers keen to get a good deal.

The base rate of interest currently stands at 0.5 per cent, although this is likely to rise as the country's economy gains in strength.