On average, loans are now 83.6% of the value of a property, compared with 81.6% a year ago.

Mortgage rates have also fallen, making repayments cheaper.

Last week's announcement by the Bank, that interest rates are likely to remain at their record low for several years to come, is also likely to improve the number of cheaper mortgages on offer.

http://www.bbc.co.uk/news/business-23668507

Is it just me or is recent history repeating itself?

It is but few seem to realise it. I was talking to an estate agent and the local housing market is very quiet. Very few buyers, and asking prices are actually falling. Though they were asking stupid prices to start with. There are some new flats for sale and they want from £400 000 for 2 bed to £800 000 for 3 bed flats.

I hope that means the rates for ten year fixed mortgages will drop. At the moment they're too high (compared to 5 year fixed) to make them worthwhile.

The problem is that these interest rates are ultimately unsustainable. They will have to rise to normal levels one day.

Which is why I'm interested in ten year fixed rate ones.

I would still go for it, as interest rates are only likely to go up. There are currently lots of questions revolving about the solvency of JP Morgan, having been caught in a classic short squeeze over tens of thousands of ounces of gold that they owe and if they go bust then rates could rocket.

If they can avoid another crisis then rates might not go up for a few years, but the timing will be hard to get right. You could have a big bank failure this year or another Greek bailout early next year. If the consensus think that rates will rise then they might go even higher for ten year fixed rate mortgages.