Mortgage rates record low as 90pc mortgages resurge

The mortgages that currently move parallel with the Bank of English’s base rate have reached a record low in January according to Tracker Deals. This will provide a much needed piece of optimise for those looking for a first time buyer mortgage, borrowers, investments, and the housing market in general.

The Bank of England released the results today that show a 25 per cent fall in January, down from 3.92 per cent in December and the lowest rate recorded since comparable records began in 1997.

The Business Banks stopped collating information on 95 per cent loan-to-value mortgages in 2008 as there were so few on the market at the time. But there are growing signs that lenders are becoming more willing to lend to borrowers with smaller deposits, although there is unlikely to be a return to the abundance of 95, 100 and 125 per cent mortgages seen before the credit crunch.

The number of deals available to people who need to borrow up to 90 per cent of the value of their home jumped by 26 per cent in January, while Nationwide yesterday said that it was reducing the minimum deposit people needed to put down to qualify for its best rates from 40 per cent to 30 per cent on nearly half of its mortgage products.