New figures from the Bank of England have revealed that interest rates on tracker mortgages fell to record low levels in January. In a sign of a recovering economy, it appears that lenders are beginning to compete for new customers, as the average interest rate charged on a tracker mortgage fell from 3.92 per cent to 3.63 per cent – the lowest figure since records began 13 years ago. Furthermore, 300 new home loan deals were launched in January in addition to the large number of deals which lenders improved.
Most significantly, there has been an increase in the number of deals available to borrowers with small deposits. At the start of February, Nationwide revealed that they are cutting the minimum deposit required from 40 per cent to 30 per cent on nearly half of its mortgage deals .
Banks and lenders have also shown a willingness to lend more money, with a 26 per cent increase in the number of 90 per cent loan to value deals available.
Experts are advising consumers to consider the benefits of remortgaging in light of the new deals, which may be better than homeowners’ existing standard variable rate.






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