Moneyfacts.co.uk (a personal finance site) reports that the average rate of a two-year fixed-rate deal now average 6.95 per cent after a peak of 7.08 per cent mid July.
The main players, Halifax, C & G, Abbey, Nationwide and HSBC are supplying the most attractive mortgage rates, as their combined average for a two-year fixed-rate comes in lower at 6.76 per cent.
HSBC has also just announced that from July 31st 2008 it's cutting its two-year fixed-rate by 0.31 per cent and wiping £200 off the fee.
More cuts could be on the way…
Darren Cook of Moneyfacts.co.uk, comments: "It is encouraging that, at long last, lenders are responding to the easing in wholesale borrowing costs and passing a discount on to the consumer.
"There is a sense that competition is finally returning to the fixed-rate mortgage market, which will benefit the borrower.
"Two-year swap rates are continuing to fall and yesterday's closing price of 5.74 per cent is the lowest since mid May of this year,
"If these downward trends continue unabated, we will see further fixed-rate cuts by our top high street lenders in weeks to come, which just might be that glimmer of hope that we are all endlessly seeking."
