Rates have started to rise, with tracker mortgages increasing by 0.18% since August and fixed rates rising by 0.14%, despite bank base rate remaining at a record low.
The most sourced mortgage was a Santander mortgage, through Abbey for Intermediaries, to 75% LTV at a rate of 3.54%.
Nigel Stockton, financial services director at Countrywide, said: “Rates are likely to continue to rise as pressures in the Eurozone and liquidity in the wholesale funding markets continue well into the New Year.”
Despite these rate rises, mortgages are still 0.96% cheaper than in 2009, with the average 75% LTV mortgages now available at a rate of 3.14%, according to Bank of England figures.
Some lenders have reduced the cost of longer-term purchase and remortgage fixed-rate deals, taking a more optimistic medium term view, he said.
“With rates for high loan-to-value mortgages remaining largely static, there is some stability for buyers who have a smaller deposit and are looking for a longer-term fixed rate mortgage to get on the property ladder. In fact, we have seen a number of major lenders re-enter the 90% LTV sector, with an Abbey 90% LTV 5-year fixed rate mortgage was one of the most sourced mortgages last week by Countrywide customers,” said Stockton.
