Mortgage rates set to fall further - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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%.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.

10-year fixed mortgage market flourishes

Given upcoming negotiations on the UK’s relationship with the EU, we are expected to have some uncertain times ahead. As a result, many borrowers will be seeking long-term mortgage repayment security, and happily, the 10-year market is flourishing.
 
Close