Fixed rate mortgages remain costly
Borrowers looking for a fixed rate mortgage or remortgage deal are still paying too much, according to moneyfacts.co.uk.
The average mortgage two-year fixed rate is 6.13%, whilst the two-year swap rate is only 3.61%. Before the economic slowdown, the difference between these two was only 0.10%.
Though the base rate cut last week reduced costs for lenders, this has not been passed on in full to mortgage and remortgage customers, due to the need for a large risk margin in the face of more economic turmoil.
November 14th, 2008 at 9:06 am
This doesn’t surprise me. It is unfortunate, though, as it makes getting/changing a mortgage harder for many of us.