Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Mortgage Fixed Interest Rates Continue to Fall

Housing-Market / Mortgages Aug 10, 2011 - 07:23 AM GMT

By: MoneyFacts

Housing-Market

For the first time since Moneyfacts started recording rates in 1988 the average five-year fixed mortgage rate has fallen below 5%, today standing at 4.99%.

In the last 29 months since bank base rate has been on hold at 0.50%, the average five-year fixed mortgage rate has stood as high as 6.24% (September 2009).


It’s not just five-year fixed mortgage rates that continue to fall. The average two-year fixed mortgage rate has fallen from 5.18% in September 2009 to 4.24% today, while the average three-year fixed rate has fallen from 5.61% to 4.74%.

Michelle Slade, spokesperson for Moneyfacts.co.uk, comments:

“The cost of funding fixed rate mortgages through the swap rate market has fallen to an all time low, and this is being passed on to borrowers through some of the lowest mortgage rates ever seen.

“Borrowers opting for the average five-year fixed mortgage today would be paying £117 per month less than someone who secured the deal in September 2009.

“Lenders are trying to tempt borrowers off variable rate deals and onto fixed rate deals as they are concerned about some borrowers’ ability to repay their mortgages when rates finally start to rise.

“A proportion of borrowers on variable rate deals will have absorbed the savings they have made from lower repayments into other monthly expenditure.

“For some of these borrowers affordability will become a problem when rates start to rise and lenders have to make provisions for the possibility that some borrowers may default on their mortgages.

“With fixed rate deals the repayments remain the same and if the borrower’s circumstances remain unchanged then affordability isn't an issue.

“With a rise in bank base rate looking unlikely in the short term, rates could fall further still.

“Once a bank base rate rise becomes imminent rates will quickly start to rise and if borrowers don’t act fast they will miss out on these all time low rates.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in