LONDON (MNI) – Interest rates on fixed rate UK mortgages fell
markedly in October, with the Bank of England’s Funding for Lending
Scheme up and running.

The BOE’s Quoted Rates data showed the average rate on a 2 year
fixed 90% loan-to-value mortgage dropped to 5.64% in October from 5.85%
in September while the rate on a two year fixed 75% LTV fell to 3.48%
from 3.67%. These falls took rates back to levels last seen in the

The BOE’s Funding for Lending Scheme went live in August and was
set up to help counter the rising rates, and tighter credit conditions,
that had materialized as a result of the intensification of the Eurozone

The average lending rate on a sterling 3 year fixed rate mortgage
for 75% LTV fell to 3.89% from 4.05% and on a 5 year 75% LTV it fell to
3.96% from 4.07%.

The average standard variable rate, however, rose to 4.35% from
4.28% in September.

— London newsroom: 44 20 7862 7491; email: