14 May

Reduction in cost of fixed-rate mortgages is "good news"

Reduction in cost of fixed-rate mortgages is "good news"

Reductions in the cost of short-term fixed-rate mortgages have been welcomed by one expert.

According to Bernard Clarke, spokesperson at the Council of Mortgage Lenders, the falls are "good news" as far as consumers are concerned.

His comments follow the release of figures produced by the Bank of England, which revealed that the typical rates paid on such products with a 75 per cent loan-to-value ratio is currently 3.83 per cent.

This was a fall from the 3.92 per cent recorded in March and is the lowest level since records began in 1995, the Bank noted.

Responding to the statistics, Mr Clarke said: "It indicates possibly a slight continuing improvement in mortgage funding conditions."

However, there remain longer-term problems concerning the funding gap that will be created by the removal of the various Bank and government support measures, he cautioned.

This is an issue that will need to be addressed, he added.

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