Fixed rate mortgages fall again in 2015

Fixed rate mortgages fell to their lowest levels in 2015, according to Halifax.

The high street lender said the average interest rate on new fixed rate mortgage fell a further 0.59% over the past 12 months with an average fixed rate now standing at 2.66%.

Halifax said there has been no change in the standard variable rate over the same period, which means that the difference between the two has widened 1.81 percentage points since August 2012.

Craig McKinlay, Mortgages Director at Halifax said: "With base rate remaining at record low levels for another year, fixed rate mortgages fell further in 2015.

“Over the past three years average rates have fallen sharply, significantly widening the gap between them and standard variable rates.

“As a result, borrowers have been able to make considerable savings.”

Craig said the remortgaging activity has improved, but remains well below its peak.

Craig added: “Whilst remortgaging activity has picked up in the last year, this is only in line with new loans.

“As a result, remortgage activity’s share of all lending has remained relatively subdued, especially when compared to its strength in 2008.

“Without the concern of a base rate rise in the immediate future, it seems borrowers’ appetite to remortgage has been dulled, meaning that some could be missing out on significant savings.”