Fixed-rate mortgages fall even further

Fixed-rate mortgages have fallen further, which is good news for homebuyers who have small deposits.

The further cuts to fixed-rate offerings come shortly after the Bank of England’s monetary policy committee voted to keep the base rate at 0.5%, which has remained the same since March 2009.

Some experts believe that the Bank of England will hold this base rate until 2016.

According to The Guardian, Barclays is offering five-year fixed-rate mortgages starting at 2.29%, after cutting its rate for this deal by 0.1%.

First Direct has also taken 0.2% off their five-year fixed-rate mortgage deal to 2.59%.

These deals can only be obtained if the homebuyer has a large deposit, which can be 35% or more of the property price.

However, lenders rates have also been slashed by Barclays which will benefit buyers with smaller deposits.

Barclays cut its five-year fixed-rate mortgages for homebuyers with a 10% deposit from 4.38% to 4.05%.

With a 15% deposit, two-year fixed-rate mortgages fell from 2.63% to 2.49% by the lender.

 A spokesman for Halifax said: “These improvements may indicate that the recent declines in mortgage rates, the reform of stamp duty and the first increases in real earning for several years are providing a modest boost to the market. It is, however, too early to draw any firm conclusions.”

Halifax revealed that house prices increased by 2% in January, with the average house costing £193,130. 

 

Naomi Havergal
Monday 9th February 2015

Category: Mortgages

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