14 Jun 2016
Mortgage Rates Fall to Record Low
According to the Bank of England, home buyers in April paid the lowest interest rates ever on their mortgages.
Earlier in the year banks and building societies dissolved some of the best deals on offer because they expected the Bank of England to start raising interest rates.
However, since then forecasts for a rate rise have been pushed back, and some Bank of England officials have even discussed the possibility of a cut to the base rate to below its current 0.5% level.
As a result, mortgage rates are once again falling. In April, the average borrower paid just 2.41% on a new mortgage, down from 2.49% in March and 2.64% in April 2015.
Five years ago the average rate was 3.84%. The Bank of England's data go back to 2004. In April of that year, the average mortgage rate was 4.55%.
The Bank of England’s data also showed that mortgage lending so far this year is at its highest level since the financial crisis.
A total of 497,301 mortgages were given out between January and April, up 17.6% on the same period a year earlier. However, the pace of lending has varied greatly.
In March, lenders gave out 124,429 mortgages, up 19% year-on-year, as buy-to-let investors scrambled to beat the rise in stamp duty on second properties which came into effect in April.
As a result, lending fell to 119,796 mortgages in April, with annual growth slowing to just 4.5%.
To secure a mortgage for your dream property, speak to one of deVere Mortgage’s experts today.