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‘Mortgages are getting cheaper’
Monday, 23 November 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.ukThe average two-year fixed-rate mortgage is at its cheapest since June, according to Moneyfacts.
Competition is returning to the mortgage market, as lenders cut mortgage rates and offer better deals at high loan-to-value (LTV).
| While it may still be too early to say the worst is over, the signs are all there. |
The average two-year fixed mortgage rate has fallen to 4.99%, according to financial information company Moneyfacts (www.moneyfacts.co.uk). This is the first time it has been below 5% since June 2009.
The rates are not so great for longer-term fixes however. The average three-year fixed-rate mortgage has increased over the last few moths to 5.58% today.
Michelle Slade, analyst at Moneyfacts, said: “Falling rates on popular two-year fixed-rate mortgages, occurring against a backdrop of lenders raising the maximum LTV on their most competitive deals, suggests that competition is increasing.”
She said that the relaxed lending criteria indicates mortgage lenders are becoming accustomed to the post-banking-collapse world and added: “While it may still be too early to say the worst is over, the signs are all there.”