The latest mortgage figures show that a 2 year fixed rate mortgage is at its lowest average since June this year. Calculations by Moneyfacts show that the average interest rate for fixed rate mortgages has fallen below 5%.

July saw an increase to an average rate of 5.21%, but lender competition is bringing the rates down further.

If, however, any homeowner wants to fix a mortgage for a longer period, then the rates have continued rising.

There were positive signs that the worst in the mortgage market was over. Homeowners, first time buyers and investment property buyers can now find mortgages where there were previously few around.