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Mortgage interest rates may have hit rock bottom.  An analysis by Moneyfacts shows that less than third of lenders cut their standard variable rate (SVR) in response to the latest cut in rates by the Bank of England.  The Bank is expected to keep rates on hold today after cutting them to just 0.5 per cent in March.

The steady reduction in the number of lenders cutting their standard rates in response to cuts in base rates by the Bank suggests that banks and building societies have gone as far they as they can.  If so, this could be a good time to lock in a fixed rate deal. 

Michelle Slade, analyst at Moneyfacts.co.uk, said: "With each base rate cut, the number of lenders passing the cut on in full to their SVR continues to dwindle. Many lenders have now cut rates as low as they are prepared to go. The average 2 year fixed rate continues to fall, currently standing at 4.65 per cent compared to 4.74 per cent at the beginning of the month.

"Despite a fall in base rate, the average two year tracker mortgage has increased, jumping from 3.54 per cent at the beginning of March to 3.62 per cent today. The result of some of the lowest margin over base deals being withdrawn."