Cost of mortgage debt falls to six-year low

12 March 2010

According to figures from the Bank of England (BoE), the average interest rate charged on two-year fixed-rate mortgages fell to its lowest level in six and a half years, The Independent reports.

The average cost of a two-year fixed-rate mortgage fell from 3.97% in January to 3.88% in February - its lowest level since July 2003.

There was also a drop in the average cost of a five-year fixed-rate mortgage - which dropped to 5.49% in February from 5.56% in January.

Meanwhile, the average cost of tracker-rate mortgages increased slightly to 3.69%, although the rates remained at their second lowest level since 1997, when records began.

The cuts come at a time when the number of mortgage deals available for people with small deposits has increased, surpassing the 2,000 mark for the first time in more than a year.

Tags: mortgage, debt, mortgage debt

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