The average two year fixed rates at 90% and 95% LTV both fell a further 6bps in July, now standing at 3.28% and 4.33% respectively.
A three year fix at 75% LTV remained static at 2.54%, while longer term fixes such as a 10 year fix at 75% LTV are seeing slight increases, from 3.24% in June to 3.35% in July
Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented:
“Looking at the Bank’s latest quoted interest rates, there is no sign of lenders suddenly pushing up their rates in anticipation of a base rate rise. While a couple of high street lenders have recently increased their rates, the vast majority are offering record-low deals and there are still plenty of competitive products for borrowers to snap up. For example, the average two year fixed rate at 75% loan-to-value is just 1.87%: 67 basis points below where it was this time last year and a price cut of 26%.
“Given the Bank of England’s latest guidance, an interest rate rise in 2015 is looking less likely, so there’s certainly no cause for concern in the immediate future. When a base rate rise does eventually happen, it is likely to be very gradual, and mortgage rates won’t necessarily follow suit straight away. Even trackers following the base rate will remain competitive after a slight rise.
“However, while there’s no need for borrowers to rush into a new deal, that doesn’t mean they should be complacent. Those coming to the end of their current deal or those languishing on less than competitive Standard Variable Rates would do well to take advantage of the rates available on today’s market, as delaying for too long could mean missing out on much lower monthly repayments.”
