From The Telegraph:
Mortgage rates have fallen back to the level they were before the credit crisis sent the price of home loans soaring last year.The average interest rate on a two-year fixed-rate mortgage – the most popular deal taken out by home owners – has dropped from a peak of 7.08 per cent at the beginning of July to 6.39 per cent, according to Moneyfacts.co.uk, the financial website.Two-year rates have not been this low since July 2007, before Northern Rock was forced to borrow £26 billion from the Bank of England and the phrase “credit crunch” entered everyday use.advertisementThe figures confirm that while the economy and the housing market continue to slide downwards, the worst seems to be over in the mortgage market.It follows two months of steady rate-cutting from the UK’s leading banks.Lloyds TSB and its mortgage lending arm Cheltenham & Gloucester as well as Abbey and the Royal Bank of Scotland are cutting fixed rates this week and other leading providers are expected to follow s…
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