Lenders 'not reducing fixed-rate mortgages'
Thursday, 13th November 2008

High street lenders are not reducing the price of their fixed-rate mortgages, according to a financial information provider.

Moneyfacts said that the current average fixed-rate mortgage was 6.13 per cent, with the two-year swap rate now at 3.61 per cent.

It said that this 2.52 per cent difference was "excessive", adding that before the credit crisis the difference between the two was just 0.1 per cent.

Analyst for Moneyfacts Michelle Slade said: "Borrowers with fixed rate mortgages will be hoping these rates will now reduce significantly, so they can remortgage at a manageable level and deal with the effects of the impending recession."

She added that many are expecting to feel the benefit of the cuts any time soon, with many anticipating the cost of mortgages falling across the board.

Earlier this week, Moneyfacts research revealed that lenders had been very quick to pass on rate increases but not increases - something it said needed to change to give borrowers help in the current market.