4 Sep

Mortgages 'now below crunch levels'

Mortgages 'now below crunch levels'

Mortgages are now coming down to the levels of interest they were being charged at before the credit crunch, it has been stated.

New figures from price comparison website Moneyfacts show that the average two-year fixed-rate deal has come down in price from 7.08 per cent at its peak in July to 6.39 per cent.

Such prices were last available in July 2007, just before the Northern Rock crisis broke, Moneyfacts stated, noting that the Bank of England base rate was 0.75 per cent higher at the time.

This may indicate that mortgage rates are increasingly being influenced by factors other than the base rate, which the Bank of England's monetary policy committee has just voted to hold.

Analysts were expecting no change in the rate today, with all 67 economists interviewed by Reuters and all nine polled by Adfero predicting no change.

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