-Five Year Fix 75% LTV Lowest On Record
LONDON (MNI) – Interest rates on fixed rate UK mortgages fell again
in November, suggesting the Bank of England’s Funding for Lending Scheme
is helping to push down lending rates.
The rates on a range of two-, three- and five-year fixed rate
mortgages were all down in November compared to October, according to
the BOE’s Quoted Rates survey, hitting their lowest levels since early
2012 or late 2011 or even on record.
The average rate on a sterling two-year 90% loan-to-value fixed
rate mortgage fell to 5.62% in November from 5.64% in October. On a
three year 75% LTV fix the average rate fell to 3.74% from 3.88% in
October, the lowest level since December 2011.
On a 75% LTV five-year fix the average rate dropped to 3.92% from
October’s 3.96%, hitting its lowest level in the Quoted Rates survey,
which dates back to January 1995.
Mortgage rates started to climb late last year as the Eurozone
crisis was reignited but they have been falling in recent months,
apparently helped by the FLS which was activated in August and which
offers banks cheap funding in return for them boosting net lending.
The average standard variable rate, however, rose to 4.33% from
4.32% in October.
-London newsroom: 44 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,M$$BE$]
