Although lenders do not rely so much on swap rates for funding mortgages anymore as they rely more on lending their deposits from savers a fall in swap rates is a welcome sign as it will result in cheaper fixed rates for borrowers. Swap rates have fallen sharply since last month's Monetary Policy Committee meeting and touched new all time lows at the beginning of last week.
The trend since early this year of steady upward movements in new business mortgage rates, for both fixed and variable rates, started to change towards the end of last month.
However, taking a longer term view the Euro crisis could easily result in money markets slowing again so for those keen to sign up to a fixed rate any opportunities presented over the next few weeks should be grabbed
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