mortgage rates back at 2007 levels
Mortgage lenders have offered borrowers a reprieve as two-year fixed-rate loans return to the same levels as last year, although average deposits remain high.
Latest figures from Moneyfacts showed the average two-year fixed rate has fallen to 6.59% from a high of 7.08% earlier this year, but lenders are still demanding average deposit sizes of 20%, up from 10% last year, which is still excluding most first-time buyers from the market.
The costs linked to mortgage borrowing have also risen substantially since August 2007, with application fees rising £161 from £803 last year to £964 today.
Darren Cook, a mortgage specialist from Moneyfacts, said tumbling rates alone are unlikely to be enough to encourage first-time buyers into the housing market.
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