Research on Mortgage Rates
16 September, 2008 | Web design
complied by comparison website Moneyfacts
Research done by Moneyfacts the price comparison website, has shown that Mortgage rates are back to where they were in August 2007. While the rates are at similar levels, banks are potentially making more profits on mortgages than a year ago. Abbey, Nationwide and HBOS have been among the lenders that have been cutting rates. Borrowers were been offered 100% mortgages by 33 lenders last summer, compared to two in August of this year. They are also required to put down much higher deposits than a year ago, an average of 20%.
The average rate on two-year fixed deals now 6.59% - almost the same as 6.56% in august 2007 and down 7.08% in early July.
Darren Cook a spokesman for Moneyfacts said "The pricing is getting back to where we were a year ago, but the appetite for lending is diminished."
Official interest rates, on which fixed mortgage rates are indirectly based, are now 5% compared with 5.75% in August 2007, which means lenders are getting better returns on the products offered.