Fixed-mortgage rates fall

Posted: 10 Oct 2007 11:03:48 GMT

The Bank of England has revealed that the majority of fixed-mortgage rates fell in September.

The Bank of England has revealed that the majority of fixed-mortgage rates fell in September.

It comes after the global credit squeeze lead to some mainstream lenders increasing rates on a number of their products.

Concern was growing that all borrowers would suffer as a result, but the Bank's figures will put some of those fears to bed.

"It is encouraging to see that average fixed-mortgage rates have fallen slightly despite the deterioration of financial market conditions over the summer," George Buckley, from Deutsche Bank told Reuters.

It is good news for homeowners on fixed-rate deals and there may be more to follow.

The Bank of England's Monetary Policy Committee (MPC) chose to maintain the base rate of interest in October for the third consecutive month.

With inflation now below the two per cent target, the general consensus among analysts is that interest rates will come down either late in 2007 or in early 2008.

© Houseladder Ltd