Situation 'improving' for UK mortgage borrowers

Posted: 23 Feb 2010 10:04:20 GMT

The situation is "improving" for UK mortgage borrowers, with home loan rates being seen to come down since Christmas, one expert has advised.

Christina Jordan of lovemoney.com says: "Since Christmas mortgage lenders have been chopping their fixed rates, shaving the cost of their tracker deals and generally becoming more consumer friendly."

She adds that homeowners taking out a 90 per cent loan-to-value deal could now save £160 a month on their mortgage in comparison with those who took out a loan in November, thanks to the average rates offered by lenders dropping by a third in the last three months.

Furthermore, Ms Jordan adds that an increasing number of lenders are becoming more confident in the state of the UK housing market and this new faith is resulting in them lending to more people, including those with just a ten per cent deposit.

Similarly, Ben Wilkie, editor at What Mortgage, recently advised that the home loan sector will become more competitive as the year continues, with an increasing number of mortgage products coming on to the market.

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