Monday, 27 June 2011

New mortgage rates reach low...

...that's if you can get them.

Rates for new fixed and tracker rate mortgages are at their lowest levels since the financial information firm, Moneyfacts, started following them in 1988.

The fall comes as expectations of an interest rate hike from the Bank of England over the next few months have receded.

The average tracker, which shadows the Bank of England rate, is at 3.37% and the average 5 year fixed rate is 5.29%.

However, Moneyfacts accuses lenders of widening the gap between their own cost of funds and the interest rates they charge to customers.

Also, over 40% of homeowners who already have mortgages are on Standard Variable Rates, which have stayed high.

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