Average mortgage rates to hit 2pc
The index which aggregates the views of a panel of the UK’s foremost mortgage experts has also released its predictions for the medium to long term.
The Index predicts that average mortgage rates will increase by 0.28% over the next two years and will be 1.5% higher in five years time.
Will Becker, chief executive of TotallyMoney.com, said: “After last month’s success of our panel predicting the exact fall in the Mortgage Rate Index, this month the panel’s view is again for a modest decline in the MRI of just 0.04%.
“As the competition on pricing has got fiercer we are starting to see lenders relax their criteria making these juicy deals more attainable.
“But still the majority of the money is available for those with big deposits (40-50%). We really need to see these changes filtering through at the higher loan to value range where low rates and relaxed criteria would provide a real boost to first time buyers who are struggling to get on the ladder.”
This months Index can be read at TotallyMoney