Hopes of a housing market recovery
Mortgage rates in the UK are now roughly the same as they were a year ago, raising hopes that the housing market could start to recover from the impact of the credit crunch.
According to price comparison site Moneyfacts, the average two-year fixed deal is now 6.59% compared to 6.56% in August 2007 and down from 7.08% in July.
However, the website warned that mortgage arrangement fees remained high. They are currently at an average of £964 compared to £803 a year ago, and lenders are also insisting on an average deposit of 20% for new lenders.
Just two lenders now offer 100% mortgages, compared with 33 a year ago, the research added.
