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Mortgage rates set to tumble as banks' borrowing rates fall to a record low - Daily Telegraph
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "With Swaps falling to their lowest levels ever, we have to expect to see cheaper fixed rates. Two and three-year Swaps are below 1 per cent and five-year Swaps are approaching 1pc so watch this space when it comes to cheaper pricing on short-term fixed-rate mortgages.
"Lenders are expecting a quiet July and August, particularly once the Olympics start, so those who want to boost business beforehand will need to offer some decent rates to entice borrowers. Abbey has made some minor improvements to its offering this week [launching a five-year fix at 3.99% for homebuyers and one at 4.09pc for remortgaging on Monday at 60pc LTV with £995 fees], while others such as Northern Rock are trying to drum up some business before the traditional summer lull.
'We are also seeing smaller lenders with limited tranches of money dip in and out of the market with some attractive rates, such as Nottingham BS which has launched a five-year fix at 3.69pc. But deals this good really won't be around for long so borrowers will need to move quickly if they wish to secure such a rate."
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