Despite the Bank of England leaving the base rate at 0.5 per cent, a few lenders of the UK have decided to lower their fixed rate mortgages and remortgages even more. The objective behind the slashing of rates, is to entice those mortgage holders with variable rate mortgages or reward those first time homeowners with a super low initial rate. This being the opinion of Michelle Slade with data analyst, Moneyfacts.

Slade said: "Millions of mortgage holders who have come off short-term fixed rate and tracker deals in recent years have gone on to their lender’s standard variable rate as it has been cheaper than fixing again."

Even though rates are at record lows, lending criteria is super tight. Lenders are struggling through it.

Slade added: "Many re now hoping that new fixed rate deals will be tempting enough to persuade some customers to remortgage. The new fixed rates are certainly mouth-watering and could be worth grabbing for some borrowers."

Although some lenders have decided to cut their fixed rate mortgage and remortgage to the bottom of the barrel, this does not mean a borrower will not have to sacrifice in some way. A few of the lenders require up to 40 per cent equity and some are even asking for at least a 40 per cent deposit down to even be considered for a deal. Arrangement fees also are varying widely among lenders. Advertisements can be seen for fees ranging from a low of approximately 99 pounds to a high of approximately 699 pounds.

Most lenders will not leave these super low fixed rates at that level for long. When interest rates start increasing they will have no choice but to raise them. Until then, several variable rate mortgage holders can start saving significantly each month. All they have to do is a little research.