30 Jul

Fixed-rate mortgage market picture improves

Fixed-rate mortgage market picture improves

The fixed-rate mortgage market is beginning to stabilise, according to new research from Moneyfacts.co.uk.

Using a barometer of the average two-year fixed-rate to analyse trends for that area of the market, the website has found that lenders are passing on interest rate cuts to their customers.

According to its data, the average two-year fixed-rate peaked at 7.08 per cent on July 11th 2008 - its highest rate for a decade - which was blamed on a rise in swap rates.

However, several major lenders including Halifax, Nationwide and HSBC have trimmed their rates in recent weeks, taking the average down to 6.95 per cent.

"There is a sense that competition is finally returning to the fixed-rate mortgage market, which will benefit the borrower," the financial advice group commented.

Last month, Moneyfacts.co.uk reported that fixed-rate mortgages are continuing to increase in popularity as borrowers seek stability.

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