Fixed-rate mortgages 'start to fall'

15-Mar-2007

In news which may be of interest to first time buyers, interest rates for fixed-rate mortgages are starting to fall, new research suggests.

According to a report provided by Moneyfacts.co.uk, eight lenders have decreased rates on fixed-interest products over the last ten days, which could benefit buyers - such as first time buyers - looking to mitigate any risks of further interest rate rises.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

"With many people balancing their finances on a knife edge, the fear of any further increases to their mortgage payment is driving many towards fixed rate mortgage deals," said Denise Blake, mortgage analyst at Moneyfacts.co.uk

"These new lower rates are therefore great news for anyone who is keen to fix their mortgage but has yet to do so," she added.

Interest rate reductions vary between lenders and range from 0.10 per cent to 0.40 per cent; the eight lenders involved in the rate reduction include Alliance & Leicester and Britannia Building Society.

Moneyfacts.co.uk offers comparisons on a number of financial products and services, including credit cards and mortgages.

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