Before the financial crisis struck in 2007 tracker mortgages followed the the average bank base rate of around 5-6 per cent.
But now tracker mortgage rates have dropped below 1pc for the first ever time thanks to a new offer from Chelsea Building Society that charges just 0.98 per cent.
The mortgage in question is a two year tracker deal which was announced just last week. The deal is made up by charging the current Bank Rate of 0.5 per cent in addition to a 0.48 per cent interest rate.
Typically with all tracker mortgage deals, the rate is an introductory offer that will track the Bank Rate for 2 years before reverting to the variable follow on rate which is currently set at 5.45 per cent by the Building Society.
For anyone excited about taking up the offer, there are a couple of terms that need to be met – the mortgage incurs a £1,675 fee on agreement and those looking to borrow on a home must have at least 35% of the properties value as a deposit.
It's not just the headline grabbing less than 1 per cent mortgage from the Chelsea Building Society that should be good news for borrowers either, there are some good deals for those with smaller deposits too.
The Bank of England recently released statistics that show that for those with a 25 per cent deposit, an average two year fix deal is available at 1.99 per cent and the average five year fixed rate deal is 2.98 per cent.