The Bank of England has revealed that mortgage rates in the UK have now dropped to a record low as growing numbers of people scramble to fix mortgage deals.
The bank’s figures show that between July and September this year, the overall interest rate average for mortgage advances fell from 2.83% to 2.76%.
In addition, the number of new mortgages that are now fixed rate deals has risen from 78.9% to 80.7%.
However, the bank’s figures also reveal that increasing house prices has also led to a leap in the number of borrowers able to borrow more than four times their income.
The proportion of mortgages where the applicant has needed to borrow more than four times their income has risen to 10.3% in the quarter, up from 9.3% in the previous quarter.
A third have no idea how much mortgage interest they pay
In another report, consumer magazine Which? says that third of those with a mortgage have no idea how much interest they are paying on their home loan.
This is despite lots of publicity predicting a rise in interest rates in the coming months which could significantly increase their repayments.
Which? says that 32% of people claim to be unaware of their rate of interest, while 29% could tell researchers their exact rate.
The magazine has also revealed that the number of fixed rate mortgage deals has rocketed by 55% over the last two years to account for 77% of the total.
Bridging finance firm organises deal within days
Meanwhile, a bridging loan for nearly £1.2 million has been arranged by Shawbrook Bank in just 10 days.
The deal was put together on behalf of a bridging finance broker’s client who needed to quickly arrange finance to enable the purchase of a property.
The bank was approached by the broker to arrange short-term finance. They did this with a gross LTV of 71%.
A spokesman for the bridging finance brokerage revealed that their client wanted a substantial sum from a lender who could assess the case on its merits and complete on time.
The spokesman added: “Having worked extensively with Shawbrook, they sprang to mind and my client has benefited from their approach.”
Bridgebank Capital has completed on £35million of loan advances
Also, the growing popularity of the UK’s bridging finance sector has been underlined with news that Bridgebank Capital has completed on £35million of loan advances in recent months.
The financial outfit made the loans to a variety of clients including those settling bank finance, offshore entities and foreign nationals. Bridgebank is also predicting business worth another £20 will be completed by Christmas.
The bank is also predicting a bright start to 2016 with high volumes of big deals being predicted.