The proportion of take-home pay that households are allocating to their mortgage payments is the lowest for a decade, according to new research from Barclays.
Last year, households spent an average 15.4% of their monthly salary on mortgage payments, which compares to a peak of 20.5% in 2008 when the credit crunch first took hold.
Barclays' research also found that only 40% of people believe that interest rates will rise this year - much less than the 74% who thought rates would increase during 2011.
The Monetary Policy Committee (MPC) confirmed expectations this month by keeping the base rate frozen at 0.5% for a staggering 35 consecutive months.
However, none of this means that homebuyers and homeowners should rest on their laurels. Actively seeking out the best mortgage deal for your circumstances and deposit level can make a world of difference to your pocket. So what are the best deals?
If you have a substantial deposit
If you are an existing homeowner and have at least 40% equity stored in your home, the world is your oyster when it comes to mortgages.
HSBC for example, is offering a two-year deal currently priced at just 1.99%, with a fee of £1,499. Homeowners should bear in mind, however, that the rate is discounted from the bank's standard variable rate (SVR) - currently 3.94% - and not the base rate.
A lender can change its SVR even if base rate stays the same, which could increase the risk of your mortgage repayment going up over the two-year term. The flip side of course, is that the starting rate is the lowest on the market.
If you are looking for the security of payments on your mortgage, HSBC is still the best option for homeowners with a 40% deposit offering a fixed rate of 2.28% until March 2014. The fee is higher than its discounted deal, at £1,999.
If you have a smaller deposit or less equity in your home
If you can't quite lay your hands on the level of equity you need to access the very best mortgage deals on the market, there are still some competitive options.
Homeowners with 25% equity (or even first-time buyers that have managed to raise this significant sum) might look at Leeds Building Society's two-year discount deal currently priced at 2.45% with a £999 fee.
Again, it's important to remember that the price of this mortgage is linked to the lender's SVR and not the base rate. Leeds Building Society is also offering the market-leading fixed rate deal at 75% loan to value, which is priced at 3.04% for three years. It also comes with a low fee of £199.
First-time buyers and homeowners with minimal deposit.
House prices may have remained pretty stagnant over the past few years but getting on the housing ladder is still no easy feat. If you have managed to scrape together 10% of the property value however, there are some appealing options.
HSBC for example is offering a two-year discount deal currently priced at 3.84% with the added bonus of no upfront fees.
If you would prefer your rate to mirror the cost of base rate, HSBC is offering a lifetime tracker at the same loan to value which is currently priced at 4.59%. Again, this deal comes with the benefit of no set-up costs.
If you would prefer the security of fixed payments for your 10% deposit, Leek United Building Society is offering a rate of 3.99% for three years in return for a fee of £999.
Being accepted for a 90% mortgage deal however, is no easy feat as at this level of borrowing, lenders tend to require a squeaky clean credit score.
That's why it's a good idea to get a copy of your credit report in advance of your application from one of the UK's three main credit reference agencies. You can find out more and compare deals at MoneySupermarket's credit monitoring channel.
Special remortgaging packages
Rewards for moving your mortgage deal to another lender extend beyond just accessing a cheaper interest rate. In a bid to attract 'the right' custom, some lenders offer other incentives to remortgagers.
Woolwich (the mortgage brand of Barclays) for example, is offering homeowners who have at least a 20% deposit the chance to switch to the bank under its Great Escape package for no application fee, free legal work and valuation and £300 cashback to cover the cost of any exit fee charged by their existing lender.
Head of mortgages at the bank, Andy Gray said: "Homeowners can't afford to forget about their mortgage just because base rate is predicted to remain at record lows throughout 2012.
"Shopping around for a better deal to ensure your mortgage remains affordable during the year will also help to offset other rising household costs such as food and energy."
However, if you are part-way through your current mortgage deal and will incur early repayment charges (ERCs) to leave, remortgaging to a better rate - even with no upfront fees - could prove to be a false economy, so always do your sums first.
Please note: Any rates or deals mentioned in this article were available at the time of writing.
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