Mortgage rates are dropping to the reduction of these seeking to for a hard and fast deal however dwelling house owners ought to take care when selecting their new product, an skilled has urged.

Property skilled Bola Ranson mentioned any present debtors on a rate greater than 6.5 p.c or these looking for a brand new product ought to go for a hard and fast fee of not more than two years.

He defined: “Rates are likely to come down over the course of the next 12 months and certainly in the short term.

“If for example you go ahead and fix into a five-year product you could find yourself stuck on what will eventually be an expensive deal and be losing out.

“A two-year fixed rate could give you the comfort of knowing where you stand on a monthly basis yet give you the freedom to be able to switch onto what is likely to be a more competitively priced product at the end of the fixed two-year term.”

Mr Ranson additionally shared some suggestions for individuals who are struggling to afford their repayments and who want to cut back them instantly.

He mentioned: “I would suggest taking advantage of the new 'low rates - high arrangement fee' deals offered by some of the lenders in the market.

“These deals allow you to pay less each month in the form of a low rate, but you will pay a much higher arrangement fee which will be added to your mortgage balance.”

He mentioned mortgage charges have began to come back down in latest weeks as lenders have diminished their charges, after the Bank of England lately held the bottom fee at 5.25 p.c.

Sharing his predictions for the months forward, Mr Ranson mentioned: “The mood amongst the market and mortgage lenders is that rates are unlikely to come down over the next 12 months.

“It is likely that they will only come down when inflation pressure comes down significantly, however we could start to see downward pressure as early as the end of the first quarter of next year.”

Recent figures from moneyfactscompare.co.uk confirmed common two- and five-year mounted charges have fallen for the second consecutive month to six.47 p.c and 5.97 p.c respectively.

The common two-year mounted fee stands at 0.5 p.c greater than the typical five-year equal, a touch narrower hole than the 0.51 p.c distinction final month.

Rachel Springall, finance skilled at moneyfactscompare.co.uk, mentioned: “Fixed mortgage rates have fallen across the spectrum, signalling a positive change in the market. Overall, the average two and five-year fixed rates have now fallen for the second month running, so borrowers could find cheaper deals to choose from.

“These are encouraging signs for borrowers who may be looking for a new fixed rate deal, but they still may be on the fence about locking in, hoping rates will fall further in the weeks to come.”

For the newest private finance news, comply with us on Twitter at @ExpressMoney_.