Mortgage rates reach new low

mortgage_ratesAccording to reports today in the second quarter of 2013 the rate of an average UK mortgage dropped to a historical new low. Coinciding with the ever improving recovery of the UK housing market.

Today the Bank of England announced the fall to 3.43% on average mortgage rates (occurring in the three months to June) this is down from 3.47% the last quarter. New mortgage rates also fell from 3.65% to 3.47%.

Borrowers are to be warned however this fall in rates may be coming to an end as rates have already started to slowly rise again since the above figures were gathered.

For first-time buyers, loans given are also on the up, having risen by 31% year on year with the number of borrowers falling into arrears with payments dropping 12% since March.

In recent months reports have indicated a surge of activity in the housing market following on from the launch of recent Government schemes such as Help to Buy and Funding for Lending, increasing the availability of loans and starting a price war among lenders.

Sources from: The Telegraph