New fixed-rate and tracker-rate mortgages have become cheaper this week – with some rates falling by as much as 0.6 percentage points – as new figures show that homebuyers’ ability to repay has improved.
According to the Council of Mortgage Lenders (CML) the proportion of income needed to pay new mortgages is now at a five-year low. Yorkshire Building Society has reduced its fixed rates by up to 0.6 percentage points, while Santander has cut a range of its tracker offerings by as much as 0.5 percentage points.
These moves follow cuts announced last week by Nationwide Building Society and Coventry Building Society.
Source – Financial Times
Justin Moy