Mortgage and financial adviser Charcol has said that it believes mortgage rates are set to get cheaper.
After 12 months of increases in the rate of borrowing, which have seen monthly repayments on a £150,000 mortgage increase by as much as £160, rates are now set to decline.
"Mortgages are to become even more affordable over the coming months. With fixed rate loans having fallen by half a per cent in the last 4 months and Base Rate probably at its peak in this interest rate cycle, monthly payments are likely to become more manageable for the UK's mortgage population," noted Ray Boulger, leading mortgage broker at Charcol.
He added: "In July 2004, the best two-year fixed rate was 5.19 per cent. The best deal is now half a per cent lower at 4.69 per cent and this downward movement is set to continue.
"Of course, anyone who has a variable rate mortgage, be it a tracker or a discount, will benefit when base rate falls, so it does look really good for most borrowers in the coming months."To read more about UK mortgages, click here.
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