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Record mortgage lows

Now here's some news to celebrate – some of the current mortgage deals out there are the cheapest they've been for over 20 years. Both fixed rate and tracker mortgages have fallen in price as fears over an imminent rate rise has diminished.

A survey by Moneyfacts found that the average two-year fixed mortgage is currently 4.32%, the average five year fix 5.29%, and the average two-year tracker 3.37%. These are the lowest rates since 1988, and many experts believe they won't rise until 2013.

That should be great news for anyone trying to get on the property ladder, but there is a downside to it all. Lending rules are as tough now as they ever have been, so getting these rates is a difficult task. Normally, unless you've put up more than a 10% deposit, you could end up paying over 6%, and this could be even more if you opt for a fixed deal.

The experts say that, whatever deal you do eventually opt for, it's best to overpay in the first instance, which will bring down your costs later on and provide a cushion in the event of rates rising.

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