LONDON (MNI) – The Bank of England’s latest survey shows mortgage
rates paid by borrowers across a wide range of products fell in June,
with some types of mortgage hitting record low interest rates.
Against a backdrop of lower rate expectations, with weak activity
data fueling expectations the BOE’s Monetary Policy Committee will leave
Bank Rate lower for longer, the data show lenders cutting mortgage
rates. Tracker and two-year fixed rate mortgages saw interest rates hit
all-time lows.
The BOE data show the monthly interest rate on sterling Bank Rate
Tracker mortgages fell to 3.05% in June from 3.38% in May, the lowest
level recorded in the BOE’s data series.
The rate on a sterling 2-year (75% Loan-To-Value) fixed rate
mortgage fell to 3.41% in June from May’s 3.51%, also the lowest rate in
the data series.
On a sterling 3-year (75% LTV) fixed rate mortgage the rate dipped
to 4.32% from 4.34%, above the 4.15% all time low, and on a 5-year fix
it fell to 4.9% from 5.02%.
The data highlight how, with the MPC keeping Bank Rate at a record
low 0.5% and with the majority on the committee making clear they will
not back a rate hike any time soon, the central bank has managed to ease
the pressure on household finances.
–London Bureau; Tel: +4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,M$$BE$]
