Mortgage rates are becoming more competitive

Lenders are starting to offer more competitive mortgage rates, according to an industry expert.

Andy Pratt, chief operating officer at Alexander Hall, said that greater activity in remortgaging was being seen because of the improving deals on the market.

"We have got past the conservative part of the post-credit crunch and lenders are now keen for more business. If the market is stagnant or only increasing slightly, then it is down to being competitive in terms of getting more market share, so they have dropped their rates considerably from where they were a year ago in order to be able to gain more business," he added.

Mr Pratt went on to say that newer rates being offered for remortgaging are, in some cases, lower or as competitive as the standard variable rates of other firms.

His words came after the Council of Mortgage Lenders revealed that the number of house purchase loans went up by 1.7 per cent in May.

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2011-07-13 09:36:26 © Moneyextra.com