The Telegraph – By James Connington
Fixed mortgage rates look set to stay low for the year, as expectations of a rise in Bank Rate have been set back significantly.
This February the Bank of England’s Monetary Policy Committee (MPC) voted unanimously to keep Bank Rate on hold at 0.5pc, as the Bank cut its UK growth, inflation and wage rise forecasts.
Rates on two, five and 10-year fixed deals have fallen again following a surge in late 2015, when Mark Carney, Governor of the Bank of England made comments suggesting a rate rise was imminent.
However, expectations for a rate rise have slipped, with market indicators suggesting Bank Rate may not rise until 2018.
Warnings in late 2015 that rising wholesale rates (swap rates) would lead to mortgage cost increases were disrupted by gloomy economic data from around the world, which sent wholesale rates tumbling in early this year.
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As a result, mortgage rates have remained low and banks are continuing to aggressively compete for business with cheap deals.
This guide tells you everything you need to know about fixed-rate mortgages and the best deals available. It is regularly updated as events change.
For up-to-date best-buy fixed-rate mortgage deals, go to our mortgage best buy tables. This shows a selection of top rates based around your requirements.Read More