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Mortgage prices fall as lenders pass on rates

February 13th, 2009

The most recent base rate cut appears to have had some effect.

The Financial Times reports that lenders are passing on rate cuts to borrowers, and fixed rate mortgage deals are falling in price.

There are conditions to these cheaper deals; consumers are advise to watch out for the conditions of the mortgages later on.

Some lenders, for example, offer borrowers a cheap fixed rate for only one year, after which they are moved to a tracker rate with a high premium over the base rate.

Bank of England to make “pointless” cut

February 9th, 2009

With mortgage deals remaining unobtainable for many borrowers, the Bank of England is expected to cut the base rate again today.

The further 0.5% cut will bring the base rate down to just 1%.

The cut, however, has been dubbed “pointless” by economists, who claim that the saving will not be passed on to borrowers to make mortgages more affordable.

Homeowners waiting for lower fixed rate mortgage deals

February 4th, 2009

A new survey claims that most homeowners are ‘holding out’ for fixed rate mortgages of under 4%.

The poll, conducted by Unbiased.co.uk, said that the average borrower was looking for a mortgage rate of 3.86%, whilst a third of borrowers wanted a mortgage deal of lower than 3%.

The survey concluded that UK homeowners are waiting longer than usual to remortgage, in case of further market changes.