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Mortgage rates set to fall further

Mortgage rates set to fall further

Category: Mortgages

Updated: 23/06/2010
First Published: 23/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Mortgage rates could fall even further before the end of the year, according to predictions by financial experts.

Following yesterday's emergency Budget, the centre for economics and business research (cebr) predicted growth in the economy could slow because of the measures introduced.

As a result, it suggested the base rate of interest could remain unchanged at 0.5% until the end of 2012.

And with base rate staying lower for longer, the consultants said they would also expect mortgage rates to fall from around 4% at present to 3% by early next year.

Should the predictions come to fruition, the housing sector would receive a welcome boost, with mortgage borrowers particularly happy.

The news comes shortly after Moneyfacts.co.uk revealed that mortgage rates had dropped to a seven year low.

The average rate on a two year fixed rate mortgage deal now stands at 4.52%, its lowest level since September 2003.

The cost of fixed rate mortgage deals has been falling since September last year.

Amongst the best two year fixed rate mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.

Yorkshire BS also offers a two year fixed rate mortgage deal at 3.05%.

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