Mortgage deals becoming increasingly cheaper
12 September 2011
Since the reduction of the base rate by the Bank of England in 2009, new research has found that mortgage rates have continued to fall.
This research, carried out by the independent financial company Defaqto, claims that the average mortgage rates have gone down since the base rate was cut to a record low of 0.5 in March 2009. A two year fixed rate mortgage package at 85% loan to value now carries a rate of 4.41%, in comparison to the 5.95% early 2009.
David Black, insight analyst at Defaqto, stated: “The current economic climate has made it extremely difficult for people to borrow, particularly for first-time buyers”. Potential buyers are still finding it difficult to obtain a loan, with many struggling to raise enough funds for a suitable deposit.
Black added: “The good news for those that manage to secure a mortgage is that mortgage rates are significantly more favourable now".
Defaqto are an independent research company that specialize in rating, analyzing and comparing financial products. These range from pensions, insurance, investments and retail banking firms.
