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Hundreds of thousands of UK property owners with fixed rates face happy new year

They should be in a position to take advantage of variable deals that are as much as 1.2% lower than when they took out two and three year fixed rate mortgages in 2007 and 2006.

According to figures from, an independent online mortgage company that links lenders with informed borrowers, it would mean a monthly saving of £150 on a £150,000 mortgage.

But borrowers will need at least a 40% deposit to qualify for the very best variable deals at 3.64 per cent from HSBC. And if they opt for a fixed rate they’ll find the best deals now are only slightly lower than in 2007 and 2006 even though the Bank of England base rate is just 2% compared with 4.5% in 2006 and 5.25% in 2007.

'Borrowers with substantial equity in their homes can look forward to major cuts in their mortgage costs in the New Year. The Bank of England's unprecedented approach to rate cuts has removed the threat of rate shocks for borrowers coming off fixed rates and in the current climate the argument has to be that borrowers should opt for variable rate deals,' said Francis Ghiloni, Marketing and Business Development Director at

'However if borrowers prefer the safety of fixing their mortgage costs then they are also sheltered from any increases in monthly costs as rates now are comparable to where they were two or three years ago,'he added.

'It is though illustrative of how the world has turned upside down that fixed rates now are almost the same as they were in 2006 and 2007 even though the base rate is just two per cent compared with 4.5% and 5.25% then. ' offers a unique free service linking mortgage customers directly to the application systems of lenders. It is the only website which allows borrowers to search the whole market for the best products ranked on true cost and to apply directly to lenders.