Mortgage rates 'hit 7 year low'

Date:Tuesday 22nd June 2010
Author: Max Freedman

The cost of repaying a mortgage has fallen to its lowest point in seven years, according to one financial advice website.

A study by found that people who are repaying a two-year fixed-rate mortgage were now paying it back at a rate of 4.52 per cent, the lowest it has been since the 4.51 per cent recorded during September 2003.

The website suggested that this could be down to mortgage lenders attempting to lure borrowers away from the record low standard variable rate by progressively reducing the cost of a fixed rate since September 2009.

Reductions have also been seen on three and five-year fixed-rate products, which are both standing at their lowest rates since May 2009 and June 2009 respectively.

This news comes shortly after a report from the Council of Mortgage Lenders revealed that there had been a seven per cent increase in the amount of money loaned during May compared with April of this year.