14
May
Reduction in cost of fixed-rate mortgages is "good news"
Reductions in the cost of short-term fixed-rate mortgages have been
welcomed by one expert.
According to Bernard Clarke, spokesperson at the Council of
Mortgage Lenders, the falls are "good news" as far as consumers are
concerned.
His comments follow the release of figures produced by the Bank of
England, which revealed that the typical rates paid on such
products with a 75 per cent loan-to-value ratio is currently 3.83
per cent.
This was a fall from the 3.92 per cent recorded in March and is the
lowest level since records began in 1995, the Bank noted.
Responding to the statistics, Mr Clarke said: "It indicates
possibly a slight continuing improvement in mortgage funding
conditions."
However, there remain longer-term problems concerning the funding
gap that will be created by the removal of the various Bank and
government support measures, he cautioned.
This is an issue that will need to be addressed, he added.
