Abacus Daily Debt News

Low rates ’still available’

It is still possible to obtain low rates on a mortgage despite the effects of the economic downturn, it has been suggested.

Catherine Hearnden, director at MyMortgageDirect, said that affordable prices can be found in the home loans market.

She claimed that a rate of between four and five per cent is a "good" deal, adding that people should take time to consider what amount they are willing to settle for.

"As long as you get a rate that you think is affordable and you are happy to pay for three, four or five years, then take that rate," she advised, recommending that homeowners opt for a fixed mortgage.

Ms Hearnden also urged borrowers not to rush in before making a decision, adding that they should not feel under pressure to agree to anything.

Recently, the British Bankers’ Association reported that 28,179 mortgages were approved in February, up from 16.1 per cent the month before.

By Jamie Price