Mortgage rates at lowest level since June

Posted: 23 Nov 2009 12:19:01 GMT

Mortgage rates have fallen below five per cent for the first time since June, according to new figures.

The average two-year fixed rate mortgage has fallen to 4.99 per cent, according to Moneyfacts.

Michelle Slade, spokesperson for the company, said: "Borrowers are finally starting to see more positive news coming out of the mortgage market."

Average home loan rates rose during July to 5.21 per cent but it has taken nearly four months for a reduction to occur.

Ms Slade goes on to say that lenders now appear to be relaxing their credit criteria as they become more accustomed to the post banking-collapse world.

She says that the signs are there that the housing market is improving but it is too early to say that the worst is over.

However, first-time buyers still appear to be struggling according to a recent Miller Homes survey, which revealed that two-thirds fear they will never be able to own their own home because they cannot save enough money for a deposit.

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