Mortgage rates are falling further as competition heats up between lenders. Yorkshire Building Society amongst others has launched a 2 year fixed rate mortgage at only 0.89% subject to a 35% deposit and a £1495 arrangement fee. The previous comparable rate was 0.98%.

There are new lenders in the market. Sainsbury Bank had re-entered after a 13 year absence and the brand new Atom Bank launched a 1.29% deal fixed for 5 years last week, only to pull-it by the end of the week as all monies allocated had been taken up. There is clearly demand for these mortgages and competition between lenders to ensure the money reaches the market.

What an excellent time to either trade-up or buy you first home.