Mortgage Lenders Slashing Rates
Mortgage lenders are continuing to cut fixed-rate offerings. Moneyfacts, the independent financial information provider reported last week that the average two-year fixed-rate fell below five per cent for the first time since July. Now, percentages have dropped even further, with the average rate currently being 4.86 per cent.
In the past week lenders Abbey, Leeds Building Society, Scottish Widows Bank and First Direct have reduced rates on some of their mortgage products.
A spokesperson for Moneyfacts, Michelle Slade, said that home loan providers appear to have put their “open for business” signs back up. She added: “Margins on fixed-rate mortgage deals have steadily increased in the last year as lenders looked to repair damaged balance sheets.”
Figures published earlier this week by moneysupermarket.com show that there are currently 1,354 types of home loan available to first-time buyers.