UK lenders advise mortgage rates should get even lower.
Several UK lenders advise they believe mortgage rates will get cheaper this summer in response to the government's recently launched funding for lending scheme.
Under the scheme which was launched 01 August, UK lenders who sign up are to be given access to cheaper funding providing they use it for small business loans and cheap mortgages.
The government also confirms that it is adding an additional £50 billion to its quantitative easing programme, the total amount is now £375 billion.
Several lenders have advised that they intend to sign up to the funding for lending scheme. Barclays, Lloyds, Nationwide and RBS all say they plan to take advantage of the cheap funding.
However one lender intends to stand alone saying it has no intention of signing up.
HSBC has stated that it has no plans to join saying that it will continue to fund its mortgage lending through retail deposits.
Prior to the scheme's launch lenders started to cut their mortgage rates. The hope is now the scheme is up and running rates could fall further.
Already some significant rate cuts have been announced. RBS has announced a cut to its 5 year fix for 90% loan to value of 1.7%, the new rate on offer is 4.79%.
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