11 Aug

Mortgages 'getting cheaper'

Mortgages 'getting cheaper'

The price of fixed-rate mortgages is coming down, Bank of England figures reveal.

New data shows that for those taking a two-year deal on a 25 per cent deposit the average interest rate in July was 6.3 per cent, compared with 6.6 per cent in June.

This represents the first fall rep since February and has shadowed the trend seen in swap rates, which have also been dropping.

Put together this could mean mortgage rates have now peaked and consumers may now see more affordable deals as the market becomes increasingly competitive.

The latest lender to announce a reduction in the cost of some of its deals is Abbey.

Today it said that as of tomorrow (August 12th) it is to lower the rates on its five-year fixed-rate products by 0.3 per cent.

It will also reducing its three-year tracker products with a 75 per cent loan-to-value by 0.1 per cent and reducing fees on its two and three-year fixed-rate deals.

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