Mort­gage rates hit 23-year low

The Daily Telegraph - Your Money - - MONEY - Sam Barker

Banks are of­fer­ing first-time buy­ers the low­est mort­gage rates since records be­gan.

In­ter­est rates on two and five-year deals have fallen to a 23-year low, ac­cord­ing to the lat­est fig­ures from the Bank of Eng­land.

Some­one look­ing to buy with a 5pc deposit could get a two-year mort­gage with an in­ter­est rate of 3.33pc, down from 4.02pc a year ago.

For five-year mort­gages, the av­er­age rate was 3.89pc at the end of Oc­to­ber. It was 4.71pc a year be­fore.

Low-deposit mort­gages, of­ten pop­u­lar among first-time buy­ers, are ex­pen­sive, mean­ing that lenders have more scope to cut rates.

Shaun Church of Pri­vate Fi­nance, a mort­gage bro­ker, said he ex­pected 95pc mort­gage rates to fall fur­ther.

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