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Falls in the cost of short-term fixed-rate mortgages may be welcomed by Dorset property buyers.

According to Bernard Clarke, spokesperson at the Council of Mortgage Lenders, the reductions are "good news" as far as consumers are concerned.

He made his remarks after the release of figures by the Bank of England, which suggested that the typical rates paid on such products with a 75 per cent loan-to-value ratio currently stands at 3.83 per cent.

This is down from the 3.92 per cent recorded in March and is the lowest level since records began in 1995, the Bank noted.

Mr Clarke commented: "It indicates possibly a slight continuing improvement in mortgage funding conditions."

However, there remain more long-term problems affecting the funding gap that will be created by the removal of the various Bank and government support measures, the expert warned.

He added this is an issue that needs to be addressed.

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