Low fixed-rate mortgage costs 'good news for homeowners'

Posted: 14 May 2010 11:45:45 GMT

The fact that fixed-rate mortgage costs are still falling is good news for UK homeowners, one expert has stated.

Bernard Clarke, spokesperson at the Council of Mortgage Lenders, says borrowing costs are slowly coming down, indicating an improvement in mortgage conditions.

His comments come in response to new data from the Bank of England, which shows that the cost of a fixed-rate mortgage has fallen to its lowest level since records began in 1995.

In April, a 75 per cent loan-to-value two-year fixed-rate mortgage would have an interest rate of 3.83 per cent, marking a decline from the previous month when the figure stood at 3.92 per cent.

However, Mr Clarke believes there are still problems that need to be addressed in the housing market. He states: "There is still a longer-term problem in terms of filling a funding gap that will be created by the removal of the various Bank and government support measures."

According to the Bank of England, some 48,901 new mortgages were approved in March, in comparison to February's figure of 46,882.

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