Mortgages 'becoming increasingly affordable'

Posted: 09 Sep 2011 16:56:30 GMT

Mortgage rates have fallen since the Bank of England lowered the base rate in early 2009, new research has revealed.

Mortgage deals have improved since the Bank of England cut the base rate to the current record low of 0.5 per cent in March 2009, but many potential buyers still struggle to obtain a loan.

This is according to research from Defaqto, which revealed average mortgage rates have dipped since the Bank cut the rate, with a two-year fixed-rate deal at 85 per cent loan to value now carrying a rate of 4.41 per cent, down from 5.95 per cent in March 2009.

However, mortgage availability is still constrained - due partially to deposit requirements - and insight analyst for banking at Defaqto David Black said the present economic climate "has made it extremely difficult for people to borrow".

"The good news for those that manage to secure a mortgage is that mortgage rates are significantly more favourable now," he added.

Defaqto specialises in researching and comparing financial products and currently analyses over 30,000 offerings from insurance, pensions, investments and retail banking firms.
 

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