'Good news' for mortgage customers

Friday, May 14th 2010

Latest figures indicating a further fall in short-term fixed-rate mortgage costs should be welcomed by homeowners.

This is the view of Council of Mortgage Lenders spokesman Bernard Clarke, who said the data released by the Bank of England earlier this month is a "continuation" of the recent trend of falling borrowing costs.

The data showed the cost of a short-term fixed-rate mortgage is now at its lowest level since records began 15 years ago, with the interest rate on a 75 per cent loan-to-value two-year deal set at 3.83 per cent on April 30th - down from 3.92 per cent in March.

Mr Clarke said the figures are a possible indication of "a slight continuing improvement in mortgage funding conditions", but warned there are still longer-term problems that need to be addressed, such as filling the funding gap that will be formed once the Bank and government withdraw their various stimulus measures.