Fixed rate mortgage rate predicted to fall

As some fixed rate mortgages are being priced as low as 1.5%, mortgage experts are tentatively predicting that rates could be about to drop to brand new lows. The pricing war on home loans has really started to pick up speed die to the government Funding for Lending Scheme (FLS).

Nationwide dropped rates down to 2% for their two year fixed deals, Yorkshire Building Society released a 1.99% two year fixed mortgage, and the Post Office and Coventry Building Society are both offering 2.3% rates for two year fixed mortgages.

Chief executive of SPF Private Clients Mark Harris stated that rates are likely going to continue to fall and could get as low as 1.5% in the very near future. Harris went on to explain that the rates are finally starting to fall downwards consistently without any pressure on them to move back up. He added that the Base Rate is also likely to stay the same for the foreseeable future.

The Bank of England Base Rate has been sitting at a record low for the past four years with Citi the investment back predicting that the rate will likely sit at .5% until at least 2017. Money markets are predicting that it will not increase until 2018.

Spokesman for London & Country Mortgages David Hollingworth stated that he thinks lenders are going to start to adjust their rates in order to keep a competitive market spot. He added that like there will be more cheap rates launched as lenders work hard to outdo each other so that they have very strong starting figures for the new year.

Hollingworth added that this is excellent news for borrowers that want to secure a mortgage at a great rate because now they can shop around and make sure that they get the best deal on the market.