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The Telegraph reports that mortgage rates have risen by more than a tenth in the last two years, but homeowners can still save thousands of pounds a year by taking advantage of the best deals on the market.

Aaron Strutt of Trinity Financial told The Telegraph there were at least 11 mortgages currently on the market with rates lower than 1.5pc, with the cheapest 1.35pc deal available from both Santander and Halifax.

“Over the past few weeks many banks and building societies have reduced the cost of their mortgages, particularly two-year fixes.

“There seems to be a race to the bottom in terms of interest rates. This is good news for consumers as they are spoilt for choice. A sub-1.5pc two-year fix seems to be the new benchmark for cheap rates and I think this could come down even further.”

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