A recent new analysis of the market conditions currently facing buyers throughout the country indicates that two-year fixed-rate mortgages have recently fallen to a record low of 4.62% – a drop of roughly 3.36% over previous figures. In real terms this equated to a normal fixed monthly payment on a £150,000 mortgaged to a much more manageable £853, a total of a £316 average drop from previous payment levels.

Other more lengthy mortgages have seen significant decreases as well starting from September of 2009, helping to realize even greater good mortgage offerings available to consumers throughout various areas. A three-year fixed-rate mortgage, for instance, has recently dropped to a low of 5.3% on average below last year’s July figures of 5.86% in addition to five-year mortgage rates hitting 5.83% over last September’s 6.4%.

For many potential home owners looking at locking in a good deal this news has been particularly attractive as it means much more affordable short- to mid-term rates for home purchases in various areas, though unfortunately to take the fullest advantage of all offers available a substantial initial down-payment may still be required. This means that some home purchases in areas such as London may still not be suitable for many first-time buyers looking to get situated within the city, however other locations a bit more remote may prove highly attractive given the combination of both lower home costs and affordable financing.

Buyers are still cautioned, however, against jumping into a deal with a lending organization offering a low rate as there may be handling fees associated with the deal that could drive up the costs. Before agreeing to a loan carefully consider how much additional funds will be required to achieve a lower fixed-rate deal and factor in the length of the deal to calculate the actual value of the loan. This will help you determine what your overall payments will be and whether or not they may be worth the commitment or if some other deal may actually offer you the best choice possible.