From This is Money:
Commentary from This is Money’s mortgages editor Simon Lambert
Mortgage rates have continued to inch down, with lenders nibbling away at their fixed rates in particular.
Santander has cut the rate on its five-year fixed rate mortgage to below 5%, but once again you’ll need a hefty deposit to get it – the deal for homebuyers is now available at 4.99%, but only for those who can raise a 30% deposit.
Meanwhile, Nationwide cut the deposit needed for its best tracker remortgages.
While most SVR borrowers should be sheltered from a rate rise, smaller building societies are deciding to risk bad press by raising SVRs without the base rate increasing. (Check your SVR here).
This move is aimed at forcing borrowers enjoying low SVRs into remortgaging.
The outlook for fixed rates coming down further looks good. The UK’s crawl out of recession has helped confidence slightly, and the cost of borrowing fixed rate funding on the money markets for lenders (swap rates) is falling…
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