Moneysupermarket has reported that over seven out of every 10 new mortgages being surveyed are fixed-rate, so the revelation is likely to prompt even more outrage from the Government.
In early December, prior to the Bank of England’s decision, the fixed-rate average was 7.30%, now it is around 7.31%, rather than the 7.05% the Government might have hoped for. Those select few borrowers with a decent credit score can now find a best-buy fixed-rate mortgage at 0.39% less than a month ago. But the bulk of the nation looking for a new fixed rate deal is likely to be worse off.
Louise Cuming, head of mortgages at moneysupermarket.com, said: Our data shows, on average, unless you are a low-risk borrower, a new fixed-rate mortgage will cost you more. I shudder to think what would have happened to the average fixed-rate mortgage if the Bank of England hadn’t cut rates.
