Bank of England suggests that mortgage rates are ‘to fall further’

Mortgage rates are to fall further over the coming months, according to the Bank of England. The Banks latest credit conditions survey, suggested that borrowing rates for homeowners fell in the first quarter of 2013, which is the third quarter in a row. Lenders have also confirmed that their rates will continue to fall over the next few months due to the government’s Funding for Lending Scheme (FLS) which is making it cheaper for lenders to borrow money, which in turn makes it cheaper for customers to borrow. Mark Harris of SPF private clients said “Those on the look out for a cheap mortgage in coming months are therefore unlikely to be disappointed.” However, earlier this week the Bank reported that the number of mortgage approvals for February was the lowest since September 2012, suggesting that the number of people taking out loans is currently falling. However, a large proportion of people applying for loans are being rejected, as a result of their credit scores due to the current economic climate. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with property solicitors in Leicester and across the country.