Confidence has returned to the mortgage market, says expert

Posted: 11 Mar 2010 09:30:36 GMT

Mortgage lenders are becoming increasingly confident about the state of the property market and as a result, are offering lower home loan rates, one expert has stated.

Andy Pratt, chief operating officer at mortgage broker Alexander Hall, says: "They [lenders] are looking to lend a little bit more so it has become a little bit more competitive. The competition has actually driven the rates slightly lower."

His comments come in response to new figures from the Bank of England, which show that the average cost of a two-year fixed-rate mortgage is currently at its lowest level since July 2003.

The standard deal is now offered at a rate of 3.88 per cent, compared to 4.35 per cent this time last year.

Mr Pratt states that while competitive mortgage rates are good news for first-time buyers, a relatively high deposit is still required for them to get a foot onto the property ladder.

Generally, it would appear that an increasing number of consumers are taking advantage of cheaper home loan rates - the latest Lending to Individuals Report from the Bank of England revealed that total net lending rose by £2 billion in January.

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