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Mortgage rates drop to 7 year low
Photo: PHOTOLIBRARY
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The credit crisis saw mortgage finance dry up, but as Britain emerges out of
recession, lenders are beginning to offer cheaper home loans for those with
smaller deposits.
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Latest figures suggested the average rate on a two-year fixed rate mortgage is
now 4.52 per cent, its lowest level since September 2003.
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Two years ago, at the height of the economic turmoil, the average rate reached
more than 7 per cent. At the beginning of this year, the rate was at 4.93
per cent, according to personal finance researchers Moneyfacts.
The cost of five-year fixed rate deals has also improved, falling from an
average of 6.09 per cent at the beginning of the year to 5.61 per cent
today.
Lenders are trying to incentivise borrowers onto new deals by making
significant cuts to their rates.
But many borrowers are opting to remain on record low standard variable rates
instead, to avoid paying a higher rate on a new deal. Some SVRs are as low …
Read the original article at Telegraph
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Tags: britain, deal, deposits, finance, Fixed Rate, house, loans, money, mortgage, offer, pay, Personal Finance, Recession, UK
