Average mortgage rates hit fresh low

Homeowners are paying the lowest-ever typical interest rates on their mortgages, according to new figures.

The Bank of England's (BoE) latest numbers, published in conjunction with the Financial Conduct Authority (FCA), show that householders are paying just over three per cent.

The Bank has pegged its base rate at an historic 0.5 per cent low since March 2009.

This helped nudge down average mortgage interest repayments to 3.01 per cent over the opening three months of this year.

This is down from the 3.26 per cent seen from October to December 2014.

Mortgage lenders have recently been competing to offer the best deals in a low-rate environment.

This price war among mortgage lenders has even seen an increasing amount of firms offer customers "cash-back" in tandem with loans.

The BoE and FCA said that the latest 3.01 per cent mark was the lowest since such records began eight years ago.

Copyright Press Association 2015