Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
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
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 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