For the first time since June, the average interest charged on a two-year fixed-rate mortgage was reported to fall below 5%.
Previously, the prices had increased during July when the average cost peaked at 5.21%. Recent trend suggests that competition is now increasing among home loan providers. But homeowners who want to fix their repayments over a longer period still have to face rising costs.
Positive Signs
However there were some positive signs showing that the worst of the squeeze for mortgage borrowers could be over.
It seems that the lenders have finally become accustomed to the post banking-collapse world, and appear to be relaxing their credit criteria.
It has been found through a survey that people are still reverting to their lender’s standard variable rate (SVR) instead of going for remortgages.
This has led to higher SVR rates, which now stand at an average of 4.7%.
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