30
Jul
Fixed-rate mortgage market picture improves
The fixed-rate mortgage market is beginning to stabilise, according
to new research from Moneyfacts.co.uk.
Using a barometer of the average two-year fixed-rate to analyse
trends for that area of the market, the website has found that
lenders are passing on interest rate cuts to their customers.
According to its data, the average two-year fixed-rate peaked at
7.08 per cent on July 11th 2008 - its highest rate for a decade -
which was blamed on a rise in swap rates.
However, several major lenders including Halifax, Nationwide and
HSBC have trimmed their rates in recent weeks, taking the average
down to 6.95 per cent.
"There is a sense that competition is finally returning to the
fixed-rate mortgage market, which will benefit the borrower," the
financial advice group commented.
Last month, Moneyfacts.co.uk reported that fixed-rate mortgages are
continuing to increase in popularity as borrowers seek
stability.
