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TODAY'S OTHER NEWS

Mortgage rates still falling despite rate hike threat

Mortgage rates continue to fall despite reports that lenders are already pulling their cheapest deals in advance of the first Bank of England base rate hike.

Latest quarterly figures from Mortgage Brain show a further widespread drop in mortgage rates for all main product types.

Rates have fallen by an average 11% in the three months to 1 July, reducing the cheapest two-year fix at 60% LTV to 1.05%, down from 1.18% in April.

The same product at 90% LTV has fallen by 8% over the same period, from 2.69% in April to 2.48% today.

And the lowest two-year tracker to 60% LTV now offers the best overall rate available at 0.98%.

The cheapest five-year tracker to 80% LTV dropped by a hefty 29%, down from 3.65% to 2.59%.

Mortgage Brain chief executive Mark Lofthouse said: “Our latest data is showing some substantial rate drops over the past three months, with many products now offering extremely low interest rates.

“Products with a 60% LTV are starting to take the charge with big rate reductions across the board over the past three months.”

Mortgage Brain’s data also shows that buy-to-let rates are holding steady rather than falling.

Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said remortgage activity is thriving as borrowers take advantage of record low rates.

“Many were put off by the hassle of remortgaging, especially in the initial period of adjustment following the Mortgage Market Review.

“But there are signs consumers are now rushing to replace their existing deals and cut their repayments while they still can.”

MAB's figures show that the total number of products available surpassed 14,000 for the first time in over six years to reach a post-recession high.

Murphy said: "The current competitive environment between lenders is likely to continue regardless of a base rate rise and means that plenty of options remain for borrowers.”

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