Barclays have just launched a 3.71% home loan, fixed for five years, just 24 hours after Nationwide released the first sub-3.75% deal.

There are a couple of catches though, first you will need a 40% deposit and secondly it comes with an £899 fee.

Nationwide still offers the cheapest two-year deal on the market at 3.89%.

Borrowers need to be aware however what happens after the fixed periods. Most fixed deals revert to trackers, of which the majority are still sitting above 6%. Whillst many analysts are predicting further reductions in the mortgage rate, there is no guarantee of that. This month, the Bank of England held the rate at 5.25%.

Speak to a finnacial advisor or mortgage broker - contact us if you would like ti be put in touch with one. 

Key One Property - home of the 0.5% sale fee*.

0.5% sale fee, no additional vat, exc marketing cost, subject to minimum fee. Information in this arcticle is a general indicator only and we do not guarantee accuracy.