In a report by Moneyfacts the average rate on a two-year fixed deal is now 6.59 per cent, which compares favourably to the August 2007 average of 6.56 per cent. Significantly, the rate is down from 7.08 per cent in July.
Steve Opie of S&K Financial Consultants is optimistic the development will help raise levels of activity in the sector.
He said, "This is welcome news. There are deals available and as this survey shows, at a sensible rate.
"For those people who have a deposit or equity of 25 per cent or more there are now rates available at below 5.6 per cent, with one lender offering a rate of 4.99 per cent, which is at the level of four months ago. "
The credit crunch has created difficult issues for families as well as businesses, but while options can appear limited, there are often ways of reducing monthly outgoings and easing the pressure on the home finances.
Mr Opie added, "Effectively managing a fixed income in this climate is so important. It is tragic when people slip into dire financial straits, when opportunities still exist to rectify the situation."
To contact a member of the S&K team for confidential advice call 760766.