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There has never been a better time to get rock bottom mortgage rates

Deals can be found paying less than 1% interest rates.

Mortgage experts believe there has never been a better time for borrowers to lock into rock bottom home loan rates, reports The Daily Mail.

In recent weeks, a flurry of new fixed-rate loan deals have been launched at less than 1 per cent from the likes of TSB and Platform Home Loans. 

This has prompted one expert, Peter Gettins of L&C Mortgages, to describe the market as 'incredibly competitive'. He adds: 'There are some fantastic rates out there and I don't think any homeowner would be kicking themselves in six months' time by taking advantage of them now.' 

It's a view shared by Ray Boulger at broker John Charcol. He says: 'It now appears unlikely that the Bank of England will introduce negative interest rates. With the base rate at 0.1 per cent, the question is not whether rates are likely to rise or fall – but when they will increase, how quickly and by how much. So a fixed-rate loan looks the best option.' 

Nationwide, the country's largest building society, is the latest lender to offer a loan deal – albeit only for existing homeowners – at less than 1 per cent. Its two-year fixed-rate loan at 0.99 per cent is available to those with at least 40 per cent equity in their homes. It comes with an arrangement fee of £1,499. 

Platform's equivalent two-year fixed-rate loan is priced at 0.95 per cent, though borrowers with loans of less than £250,000 would be better off opting for Platform's two-year 1.05 per cent fixed-rate loan, because the arrangement fee is £500 lower at £999. 

Though two-year fixed rates are cheaper than those on five or 10- year fixed-rate loans, experts believe most borrowers would be best opting for a five-year fix. 

Boulger says: 'The best five-year fixed rates are only slightly higher than the best two-year deals. By fixing for a longer period, a borrower not only secures a low interest rate for an extended period of time, but they avoid the cost of switching to another deal in two and four years' time.' 

For homeowners with at least 40 per cent equity in their homes, NatWest, Platform, TSB and Santander all offer five-year fixed rate loans at less than 1.2 per cent.

dailymail.co.uk/money

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