Lending becoming more competitive
22 June 2010
The average rate on two year fixed rate mortgages has fallen to 4.52%, its lowest level since September 2003, when the average stood at 4.51%, say Moneyfacts.
Michelle Slade, spokesperson for Moneyfacts.co.uk commented:
“Many borrowers are opting to remain on record low SVRs and overpaying their mortgage rather than secure a new deal at a higher rate. Lenders are trying to incentivise borrowers onto new fixed rate deals by making significant cuts to rates.
“A fifth of lenders have moved to increase their SVR since bank rate was kept on hold after finding their previous level unsustainable. Competition for a limited amount of mortgage business continues to increase amongst lenders, who are once again actively competing to be top of best buy tables.
“Previously, only deals for borrowers with large deposits were seeing cuts, but as the market improves borrowers with smaller deposits are being offered more competitive deals. The platform has been set for the mortgage market to return to some sort of normality, while still applying the lessons learnt over the last few years.
Taj Kang, Associate Director at Contractor Mortgages Made Easy commented “The increased competition amongst lenders can only be seen as good news for any contractor looking for a mortgage. Your contractor mortgage specialist should be able to secure you the best rate for your particular needs”