Mortgage rate back to pre-crunch time
London (Online-Unsecured-loans) September 8, 2008: The above move has somewhat lifted the financial pressure to certain extent from all those people who fall into the category of overburdened homeowners.
According to Michelle Slade, Moneyfacts analyst, the average rate for the two-year fixed loans stands presently at 6.39% , which is just around the same level as it was in pre-liquidity crunch period. Another stat revealed that the latest average rate has come down drastically from its top 7.08% , which was recorded on 11 July of this year.
This descent in average fixed loan rates, means that those homeowners who are looking to remortgage will have more cheap deals to choose from. Michelle Slade also added saying, “The decrease in borrowers' monthly repayments should not be as much as it would have been had they remortgaged two months ago, which will hopefully mean more borrowers can afford to stay in their homes." She also said, “Only time will tell if we have finally turned a corner, but this is the most prolonged period of cuts we have seen since the credit crunch began."
Meanwhile, government too has employed serious measures with an intention to revive the sinking housing market. They have started the trend by increasing the house purchase tax for the next one year, starting from September 3.
