Interest on mortgages has edged its way to be the lowest on recent records, according to figures released by the Bank of England.
Down from 3.26 per cent in the last quarter of 2014, the average interest rate of a home loan advanced during the initial quarter of this year dropped to 3.01 per cent.
Since 2007, this is the lowest rate on gross advances, according to the report which published these figures.
Recent months have seen mortgage lenders battling to slash their prices in competition, and therefore you can currently get loans for incredibly low rates.
There is also a growing trend of mortgage lenders offering cash back schemes to their loans in an attempt to make them more attractive to potential customers.
This is all very good news – if you can afford a mortgage.
Figures from the Bank of England and Financial Conduct Authority have shown that the first quarter of this year, mortgage lending totalled £45.6 billion, a decrease of 3.2 per cent compared to the same time a year before.
This reflects the fact that the lenders are slashing interest rates, as they are trying to make their deals more compelling and accessible to a market that is losing an ability to buy.
Furthermore, the buy-to-let lending has increased over the last year. £7.6 billion was lent in the first quarter of 2015 compared to the first quarter of 2014 when £6.8 billion was lent. This seems to indicate that those with money are buying up properties in order to rent to those who don’t.
The knock-on effect of this could be making it harder for first time buyers to afford a home, leaving them with little choice but to rent.
This is part of the issue that Help to Buy was set up to tackle and defend against, and with the schemes almost passing the 100,000 sales mark in their two year lifetime, it has at least made a difference to quite a lot of people’s lives, even if house prices are still largely unattainably high.