- Friday, 14 May 2010Debt management plans could become easier to handle as the interest on fixed-rate mortgages decreases making it cheaper to borrow money.
According to the Council for Mortgage Lenders (CML), trade association for the mortgage industry, the costs of short-term fixed mortgages are falling which possibly indicates an improvement in funding conditions.
Bernard Clarke, a spokesperson for the CML, said: "It is a continuation of the trend in which we have seen borrowing costs coming down which clearly is good news for mortgage customers."
Mr Clarke's comments follow the announcement from the Bank of England that the cost of a fixed-term mortgage has fallen to its lowest level since 1995 when records began.
For example the interest rate on a 75 per cent
loan-to-value, two-year fixed rate mortgage deal was 3.83 per cent on April 30th 2010 - down from 3.92 per cent in the previous month.
The reduction in interest may have been caused by the increased availability of funding from banks and Westminster but uncertainty remains about the impact the coalition government will have on mortgage costs, suggested Mr Clarke.
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