Two-year fixed-rates return to 2007 levels
by Gill Montia
Financial data provider, Moneyfacts, has announced that rates on the typical two-year fixed mortgage have returned to their 2007 levels.
Interest on the average two-year fixed-rate deal is now down to 6.59% from a high of 7.08% earlier this year.
However, potential borrowers will need a hefty deposit to benefit from the fall because the average deposit being demanded by lenders has risen to 20%, up from 10% last year.
In addition, lenders have hiked the costs involved in securing a loan since the pre-credit crisis idyll of August 2007.
Application fees are up to an average of £964 compared with £803 this time last year.
The home loan market is also far less competitive than a year ago, with only 3,748 products on offer compared with 13,027 in August 2007.
Whilst acknowledging that falling rates benefit remortgagers, property experts see little to encourage potential first-time buyers into the market.
They need large deposits to secure the best rates and are likely to remain in watching and waiting mode until the market has bottomed out and the Government has clarified its position over changes to Stamp Duty.
Discuss this in the Finance Markets forums
Story link: Two-year fixed-rates return to 2007 levels
Add to Bookmarks:
Related financial stories to: Two-year fixed-rates return to 2007 levels
- Rates on two-year fixed mortgages top 7%
- Fixed-rates loans at eight-year high for new borrowers
- Cost of fixed-rates loans hits ten-year high
- Borrowers put faith in three-year fixed-rates
- Average two-year fixed-rate drops below 7%
- Homeowners stuck with high 25-year fixed-rates
- Two-year fixed rate average falls to 6.39%
- Lloyds TSB and C&G cut fixed and tracker rates
- Nationwide increases fixed-rates
- Lenders resist lowering fixed-rates
Tags: average, fall, fixed, interest, Moneyfacts, mortgage, rate, two year
Previous: « Local councils network eager to provide home loans
Next: Bids news lifts insurer Benfield »
Visited 752 times, 1 so far today
