The rates payable on fixed two-year mortgages have fallen below five per cent for the first time in four months, it has been revealed.

According to figures published by Moneyfacts earlier this week, the average rate payable in July was 5.21 per cent.

Michelle Slade, a spokesperson for the organisation, commented: "Borrowers continue to favour shorter term deals, as in uncertain times they are not tied in for long periods if market conditions change dramatically."

Falling rates on popular two-year fixed-rate mortgages indicates that competition is increasing and financial service providers are beginning to relax their lending criteria slightly, she commented.

In related news, the House Prices and Affordability Index released by FindaProperty.com recently revealed that the cost of first-time buyer properties declined over the last month, with prices now standing at £154,309.

However, London and the east of England bucked the trend and saw modest increases of 0.3 per cent and 0.6 per cent respectively.

Those planning to move house can make the process as stress-free as possible by using self storage facilities.

Written by Emily Sanders