By Marcus Leach

Data released by Moneyfacts has shown that interest rates on new mortgage deals are at their lowest level since 1988.

The financial information service company attribute this to the fact that lenders are finding it easier and cheaper to raise money in financial markets.

This is coupled with the fact that the Bank of England are not expected to raise the current bank rate above 0.5%, where it has been for over two years now.

"Earlier this year the market expected a rise in bank base rate, that saw mortgage rates start to rise," said Michelle Slade of Moneyfacts.

"An imminent rise in bank base rate now appears unlikely, and the cost of funding on the swap rate market has reduced.

"Lenders appear to be applying cuts equally across all loan-to-value (LTV) tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower LTV bands."

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