Recent mortgage rate cuts from a number of lenders suggest home loan providers are starting to wise up to what borrowers really want.
This is the suggestion of Michael Ossei, personal finance expert at uSwitch.com, who was speaking in response to news that Halifax, Nationwide and Barclays have all altered their rates.
Mr Ossei noted customers have not been getting a fair deal from mortgages companies in recent times, as firms have failed to make changes despite the Bank of England base rate being stuck at 0.5 per cent – an all-time low – for neatly three-and-a-half years.
The average interest rate on a fixed mortgage has started to lower, however, with the cheapest currently standing at around three per cent.
Mr Ossei observed: “With many consumers struggling to pay off other debts … it’s hardly surprising there is a great deal of appetite for longer-term fixed-rate deals.”
However, the expert noted there is a downside to the new rates, with a reduction being seen in the number of shorter fixed deals offering good value.
Indeed, the amount of two-year fixed deals boasting free valuations and legal fees dipped from 53 per cent in 2008 to 47 per cent in 2012.
