Will the best mortgage deals get even better?

Category: Mortgages
Date: 7/30/2010

Even more hints have been given that mortgage costs could remain low for the foreseeable future.

Just days after a respected think tank forecast the base rate of interest might have to stay at its historic low of 0.5% until 2014, the Governor of the Bank of England also suggested low rates are here to stay.

Playing down hopes of a fast recovery in the economy, Mervyn King said that although interest rates would eventually return to 'more normal' levels, he feared there would be 'some significant distance to travel' before this happens.

According to the latest research from Moneyfacts.co.uk, homeowners are already reaping the benefits of some of the cheapest fixed rate mortgage deals for seven years.

What is more, the best fixed rate mortgage deals on the market continue to get even better, with many lenders still choosing to reduce their rates.

For borrowers looking to fix their rate for a two year term, Yorkshire Building Society (with a rate of 2.99%) and ING Direct (3.09%) offer the best mortgage rates today.

Over the fixed term of three years, ING Direct (3.89%), Yorkshire Building Society (3.99%) and The Co-operative Bank (4.69%) all currently offer some of the best fixed rate mortgages around.

For those looking to fix their repayments for the longer term of five years, then Yorkshire Building Society (4.19%) is again currently offering one of the best mortgage deals around.

If recent trends continue, then it is entirely reasonable to suggest that even cheaper mortgage deals could soon be on their way.

Make sure you keep an eye on the Moneyfacts best buy charts to keep abreast of all the best mortgage deals as they become available.