People considering taking out a fixed-rate mortgage should act quickly to snap up sub-6% deals while they last, a mortgage broker has said.

A fall in swap rates, the level at which banks lend to each other for fixed-rate loans, has allowed a few lenders to enter the market with sub-6% fixed rates, said Katie Tucker of John Charcol.

But she added: "These are unlikely to last long so existing good deals should be snapped up quickly."

The UK's second biggest lender Abbey has cut the cost of its five-year fixed-rate mortgages, available through brokers, by up to 0.15%, while its two-year fixed-rate deals have been cut by 0.1%.

The move follows the recent trend among lenders to cut the price of fixed-rate mortgages as swap rates come down, but to increase rates charged on variable and tracker loans in the face of higher inter-bank borrowing costs.

Two-year swap rates bounced back by 0.1% last week, from earlier falls, to 5.93% following a speech by Bank of England Governor Mervyn King in which he said interest rates will not be reduced purely to shield lenders, adding that the Bank's priority is to keep inflation close to its 2% target.

Ms Tucker said the Woolwich currently offers the best two-year fixed-rate deal with a rate of 5.59% and an arrangement fee of £995, while Britannia is offering a five-year fixed-rate deal of 5.39% with a fee of £999.

However, despite falls in the price of fixed-rate mortgages many loans for people with bad credit histories have now reached double figures.

Lenders in the sub-prime sector are also demanding higher deposits, with some now only prepared to advance 75% of a property's value on certain products, as they tighten their lending criteria in response to the global credit crunch.

Ms Tucker said: "The sub-prime market is growing into its new skin of lower loan-to-value boundaries and higher pricing as expected. Many sub-prime rates are now weighing in at double figures."

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