Reported in today's "Financial Times":
"The lowest ever five-year fixed rate on a UK mortgage will be launched today as banks and building societies continue to slash the cost of fixed-rate home loans in response to the eurozone crisis which is holding down the cost of borrowing in the UK.
Over the past month, mortgage lenders have made significant cuts to fixed-rate loans following a sharp drop in swap rates - the rate at which banks lend to each other and price the cost of fixed mortgages.
Banks are currently able to negotiate five-year swap deals at about 2.2 per cent due to expectations that interest rates will remain depressed over the longer term".
This doesn't mean we can get rates priced at this level, because banks add their margins and these margins increase as the percentage you borrow against the value of the property increases (LTV).
It is not impossible to get a five year fixed rate lower than some lenders currently charge on their Standard Variable Rate!
Even at 85% LTV there is a lot more competition out there than at the beginning of 2011.
So why not see if you can pay for your summer holiday by making savings on your mortgage?
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