Latest mortgage rates continue to rise but lenders offer higher LTV.
February 2012 saw various lenders change their latest mortgage rates however most of the changes made were in an upward direction.
This increase in lenders rates has come in spite of the news that the Monetary Policy Committee has left the Bank of England base rate at 0.5 per cent for the 36th consecutive month.
Few lenders have chosen to react against the trend to increase their latest mortgage rates. Many attribute this to an increase of funding pressure in the whole-sale market. Since the eurozone crisis funding costs have led to an increase in the cost of both tracker mortgages and to a lesser extent shorter term fixed mortgages.
There is some positive mortgage news for borrowers though, 5 and 10 year fixed rate mortgages are showing stability, more lenders are launching higher LTV mortgage deals and for investors the buy to let mortgage market is looking very promising.
Lenders now look for better margins as higher funding costs impact their profits, the difference between the rates that are charged on low and high LTV mortgage deals also continues to fall. In 2011 figures show that the average rate difference on high and low LTV narrowed by around 0.5 per cent.
In general the higher fees charged for buy to let deals make the latest mortgage rates roughly between 1 to 1.5 per cent higher than similar residential rates. Increased competition in buy to let sector has started to impact on rates offered in this sector.
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