Fixed mortgage rates at low levels

A recent article in the Guardian has revealed that mortgage rates have dropped to the lowest levels seen in 24 years, even for first time buyers with a 10% deposit. It was reported that mortgage rates have slowly reduced since the government introduced the Funding for Lending scheme in August 2012. Recently however, reduced rates mean that potential home owners can access the lowest fixed rate mortgages since 1989 according to Moneyfacts. Editor at Moneyfacts, Sylvia Waycot, commented on that: "To put the current rates into context, if you had opted for a two-year fixed in June 1989 you would have paid an average of 12.83%, the least competitive rate was 13.2%, and a five-year fix averaged out at 12.85%." "Recent criticism levied at banks was that they were offering the best mortgage deals in the less risky 60% loan to value (LTV) tier. It is good news on that front, as some very attractive higher LTV loans are at last entering the market." It appears the lower rates are helping more first-time buyers to purchase property. Figures from The Council for Mortgage Lenders (CML) demonstrated that the number of first time buyers coming to the market reached 216,000 in 2012 which was the highest rate for five years.