Low rate fixed rate mortgages are becoming available once more with several lenders reducing rates more than once in recent weeks.

Following a recent spate of rate reductions borrowers can now access a low fixed rate mortgage at just 4.69%.

This low rate offer does however have a downside. The arrangement fee is 2.5% of the loan which is £2500 per £100,000 borrowed for a 2 year fixed rate. This is an exclusive offer only available from a select number of mortgage advisers.

Borrowers have seen a rise in mortgage lender arrangement fees but many may object to paying as much as 2.5%.

A more sensible low rate fixed mortgage offer with an arrangement fee of £995 is no available at a rate of just 5.59% for 2 years.

Other lenders battling for competitive low rate fixed mortgage offers include Cheltenham & Gloucester with a rate of 5.49%, an arrangement fee of £1995 and a free valuation and Halifax with a 5.59% 2 year fixed rate, a £1999 arrangement fee but free legal fees as well as a free valuation.

Borrowers should start to see more rate drops as other lenders reassess their standing in the marketplace and reduce their fixed rate offers in order to remain competitive.

Rates have been declining steadily recently causing another ‘blip’ in the number of mortgage approvals as applicants hold off hoping for an even lower fixed rate offer.