CML welcomes fall in short-term fixed-rate mortgage costs

Short-term fixed-rate mortgage costs have fallen to their lowest level since records began in 1995, according to new figures.

A two-year fixed-rate product with a 75 per cent loan-to-value now carries a rate of 3.83 per cent, compared to 3.92 per cent in March, statistics from the Bank of England show.

Bernard Clarke, spokesperson at the Council of Mortgage Lenders CML, said the decrease is "good news" for customers and may indicate a "slight continuing improvement" in mortgage funding conditions.

However, he added that a funding gap would develop once government support measures are removed, creating a longer-term problem that will "need to be addressed".

Meanwhile, Mr Clarke said it was too soon to predict what impacts the coalition government will have on the mortgage market.

He said the CML will be "quickly seeking to have meetings with the relevant ministers and officials and maintain the work that we have always done".

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2010-05-14 13:52:57 © Moneyextra.com