By Matt Oliver And Ben Wilkinson For The Daily Mail
Published: 00:09 GMT, 9 November 2019 | Updated: 01:36 GMT, 9 November 2019
Mortgages have hit record low rates in a 'cut-throat' price war.
With the election and Brexit uncertainty giving buyers cold feet, banks are offering steep discounts to pull in customers.
Brokers said fixed rates on five-year deals have dropped below 1.5 per cent for the first time.
Mortgages have hit record low rates in a 'cut-throat' price war as banks offer steep discounts to pull in customers in the face of Brexit uncertainty (stock image)
Lenders have also slashed rates for two-year mortgages to as little as 1.05 per cent.
Experts predict they could soon cut these to less than 1 per cent.
The extraordinary price war has intensified as banks struggle to pull in customers.
They are able to lend so cheaply because they can borrow money at an historically low cost, with the Bank of England's base rate set at just 0.75 per cent.
Mortgage approvals for the first half of 2019 were at a ten-year high, and the number of first-time buyers has reached its highest level since 2007, at 170,000.
Mark Harris, of mortgage broker SPF Private Clients, said the 'astonishingly cheap' rates were the lowest he had seen in his 25-year career.