Mortgage rates fall to average of 3.81% in May

The average rate of UK retail mortgages (including all fixed and variable rates and all LTVs) in May 2014 is 3.81%, down 0.15% from April 2014, according to the Moneyfacts True Cost Index.

Related topics:  Mortgages
Amy Loddington
18th June 2014
Mortgages

Average mortgage rates decreased across the fixed and variable ranges, with the exception of fixed five-year deals which saw averages increase by 0.01%.

The number of fixed rate mortgage products on the market contracted, with the exception of five-year fixed which increased by 54 new products and three-year variable which increased by 11.

Sylvia Waycot, Editor at moneyfacts.co.uk, said:

"The average true cost of a mortgage fell during the month of May thanks to a short-term improvement in wholesale funding as a result of the fluctuation in SWAP markets.

"As speculation on a base rate rise becomes even stronger, expectations are that pressure will mount on fixed rates to increase in the near future."

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.