Fixed Rate Deals Becoming Cheaper

Date Published 01 August 2008

Thursday 31st July 2008

The cost of fixed-rate deals is falling, offering a "glimmer of hope" to borrowers amid the downturn in the housing market, according to Moneyfacts.co.uk.

Research conducted by the personal finance site showed that the average cost of a two-year fixed rate as of July 11th was 7.08 per cent.

However, since this time the fall in swap rates, which are used by lenders to set rates for fixes, the average rate has fallen to 6.95 per cent.

The cost of the deals has been brought down after a number of mainstream lenders have announced cuts to rates recently.

These include Halifax, Cheltenham & Gloucester (C&G), Nationwide and HSBC, which currently charge an average rate of 6.76 per cent.

Darren Cook, mortgage expert at the site, commented: "There is a faint glimmer of hope the fixed-rate mortgage market is returning to some sort of normality."