Mortgage buyers continue to benefit from very low interest rates while savers are facing difficulty in finding a good level of interest.

Research from Moneyfacts reveals mortgage rates are lower over six months as competition from lenders benefits mortgage borrowers with two-year fixed rates 0.03% lower at 2.44%.

The low rates means first time buyers and home movers can purchasing a property have a better change of affording the monthly repayments to buy their home.

In contrast savers are in a challenging market and data shows the rates for fixed savings accounts have reduced at a steeper curve than mortgage rates with a two-year bond 0.27% lower at 1.36%.

Mortgage rates continue to fall

The cost of the three-year fixed rate has reduced 0.06% to 2.60% in the last six months, five-year fixed rate is 0.10% down at 2.75% and ten-year fixed rate 0.09% lower at 2.91%.

The two-year fixed rate is at 2.44% whereas the all time low was 2.20% two-years ago so providers may be reducing rates now as borrowers return to remortgage.

For remortgage buyers at the end of your mortgage deal, switching to a new mortgage deal would help you to reduce the cost of your monthly repayments.

The following table from the Moneyfacts shows the change in mortgage interest over the last six months for different fixed rates.

Mortgage	Six months	One month	Current
Two-year	2.47%	2.45%	2.44%
Three-year	2.66%	2.60%	2.60%
Five-year	2.85%	2.75%	2.75%
Ten-year	3.00%	2.98%	2.91%

Darren Cook finance expert at Moneyfacts.co.uk said, it appears that fixed mortgage rates are continuing to be cut despite the rise in interest rate SWAPs.

SWAPs are used by lenders to hedge themselves against future interest rate fluctuations and the latest rise could be clawing back provisions of an expected Bank base rate cut in the short term.

Lower mortgage rates will benefit buy-to-let landlords as they can remortgage to reduce the cost of interest repayments made to lenders.

Difficult time for struggling savers

Savers have had a difficult time with fixed interest rates from one-year bonds reducing 0.17% to 1.29% in the last six months, two-year bonds down 0.27% at 2.36% and three-year bonds lower by 0.33% lower at 1.51%.

The following table from the Moneyfacts shows the change in savings accounts over the last six months for different fixed rates.

Savings	Six months	One month	Current
One-year	1.46%	1.31%	1.29%
Two-year	1.63%	1.41%	1.36%
Three-year	1.84%	1.56%	1.51%
Five-year	2.15%	1.88%	1.77%

Darren Cook said, some investors favouring longer-term riskier investments could be holding back on decisions and depositing larger sums of money in savings options for the shorter term.

The fall in savings fixed rates could continue with so much cash on deposit which is particularly hard for people in retirement relying on savings interest for income.

As an alternative, older homeowners with considerable value in their property would allow the equity release mortgage buyer to access money and maintain your standard of living as costs rise.

What are your next steps?

Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt, home improvements or gifting to a family member.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.

At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.