The Bank of England has kept interest rates at 0.5 per cent for the 35th consecutive month, ensuring mortgage rates remain affordable for another month.
Since March 2009, when the Monetary Policy Committee took the decision to reduce the rate to 0.5 per cent, those on tracker mortgages have benefited from reduced rates.
Looking ahead, the bank said "a gentle recovery in household real incomes as inflation falls" will be seen in the months ahead.
Ray Boulger of leading independent mortgage adviser John Charcol added that bright spots on the horizon for mortgage holders at the moment include "five to ten year fixed rates, which are fairly stable, (and) higher loan to value (LTV) mortgages".
In an effort to boost the number of
first time buyers taking out mortgages, the government is continuing to run its FirstBuy scheme, which requires a five per deposit and a 75 per cent LTV mortgage.
At the
Billington Grove development in
Leighton Buzzard from Taylor Wimpey, this means a property worth £210,000 can be bought for just £168,000, with a deposit of £10,500.
See Also: Property News (6705)
Date Published: 10 February 2012
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