Base rates have fallen from 5% in October 2008 to 1.5% now. Mortgage rates have also fallen- not by as much but still by a significant amount. This does mean that monthly repayments on your prospective home loan have been slashed dramatically in the past few months. Therefore if you are looking for a loan today you will be able to get that loan at a much lower rate than if you were looking in Autumn,

However, the downside is that due to the uncertainty in the market lenders are requiring much bigger deposits than was previously necessary.

The Financial Times has reported that 60% of all deals now require a deposit of at least 25%.  And 25% of all deals, those with the most attractive interest rates, now require a massive 40% down payment.

Therefore whether you can benefit from the fall in rates depends on the amount of deposit you have been able to save.

This entry was posted on Monday, January 12th, 2009 at 8:46 am and is filed under finance general, interest rates, mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.