Investment Property News - Bueno Investments Limited

The typical cost of a fixed-rate mortgage has risen even though the Bank of
England cut interest rates in December.

Moneysupermarket.com said before the Bank reduced interest rates last month,
the average rate charged on a fixed-rate mortgage across the whole market
was 7.30%.

But since then, rather than coming down as many economists had predicted,
the average fixed rate has actually increased slightly to 7.31%.

Unlike standard variable rates and tracker deals, fixed-rate mortgages are
not based on the Bank of England base rate but on swap rates.

Even so it would still be expected that fixed-rate deals would come down to
reflect a fall in the official cost of borrowing.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "I shudder
to think what would have happened to the average fixed-rate mortgage if the
Bank of England hadn't cut rates.

"Many homeowners who waited until after the interest rate cut to get a
fixed-rate deal will be worse off, much to their annoyance."

Copyright © PA Business 2008

http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.bankofengland.co.uk/ (Bank of England)