Cheapest mortgage deals save half a trillion in interest.

Lenders cheapest mortgage rates have led to many home-owners being financially much better off.

Thanks to the Bank of England's historically low base rate, British home-owners have collectively saved themselves over £500 billion in mortgage interest payments.

This gain, which has come about through lenders cheapest mortgage rates, is roughly £50,000 for every mortgage holder in Britain. The figure is almost level with the loss of interest on savings and so while the news is fantastic for mortgage holders it is not so great for savers.

According to BOE data compiled since the base rate cut, for the 3 year period up to December 2011, home-owners with mortgages paid a total of £1,328 billion in interest payments. For the 3 year period before the rate cut, total mortgage interest payments were £1,897 billion.

This is a total difference of £569 billion, which averaged out over the 11.2 million mortgage-holders in Britain is £50,820 for each borrower.

Some mortgage holders have experienced a dramatic reduction to their repayments. In the 3 years leading up to December 2007, an average lifetime tracker was charged at base rate plus 0.7 %. With the base rate at around 5.5 % the rate actually paid was around 6.2 %.

After the base rate fell to 0.5 %, some borrowers on life time trackers arranged prior to the credit crisis have experienced a dramatic reduction in their costs. Some may now have a mortgage rate as low as 1.2 %.

Deal Direct can help you get the cheapest mortgage deal available from lenders. Call one of our brokers today and let us search the whole of the UK mortgage market on your behalf.