11 Mar

Mortgage rates 'are decreasing'

Mortgage rates 'are decreasing'

In news which may be welcomed by people seeking UK homes, including high-end property in Essex, mortgages rates are said to be falling.

According to Andy Pratt, chief operating officer at Alexander Hall, the competition in the market for such loans is the cause of the trend.

He said: "Rates are low and the confidence is back within the lending community. The competition has actually driven the rates slightly lower."

With it being unlikely that there will be an influx of new home loan providers, it will be mainly existing banks and building societies that provide consumers with property finances, he added.

Mr Pratt's comments follow the release of Bank of England Figures, which revealed that the average cost of a two-year fixed-rate mortgage is at its lowest level since the summer of 2003.

The typical deal had a rate of 3.88 per cent last month, which was a fall from 4.35 per cent during the same time last year, the organisation noted.

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