There has never been a better time to remortgage with rates at record lows, according to price comparison site Go Compare.

The firm said the two-year fixed rate market had dropped dramatically with rates now available from 1%. Five-year fixes are also on offer around the 2% mark for homeowners who can put down a 40% deposit.

It said the market was likely to stay at record lows for most of the year, with the Bank of England base rate not expected to rise during 2015.

However, additional affordability checks are leaving some first-time buyers struggling to access finance. Matt Sanders, Go Compare’s mortgage spokesman, said it was important for buyers to make sure their personal finances are in order before starting the application process.

“First-time buyers and those looking to move house with a new mortgage should think about doing a personal finance audit before approaching a lender,” he said.

“Check your credit file, work out your income and outgoings, make sure you could afford an increase on your mortgage should the rates rise and consider speaking to an independent mortgage advisor. Get fully armed with all the information you need before approaching a lender.”

He also warned remortgage customers to look beyond the headline rates offered by banks as many come with additional fees.

“Many products have substantial up front non-refundable arrangement fees and as the interest rates have tumbled, these fees have risen. Factor those fees into any mortgage product you are looking to take out,” he added.

“There are some mortgages available without upfront fees, but be aware that the interest rates on those products may not be as low. However, the slightly higher interest rate may be worth paying to avoid the upfront fee.”