Fixed rates fall to pre-credit crunch levels

Average fixed rates previously peaked at 7.08% at the beginning of July but have gradually fallen as money market costs fell. Moneyfact’s says the reduction in fixed rates will soften the blow for homeowners who need to remortgage, but warns mortgages are still much more expensive than they have been in recent times. The 6.39% average is the same as the levels seen a year ago at the beginning of the credit crunch, but Bank of England base rates were 0.75% higher at that time. Michelle Slade, analyst at Moneyfacts.co.uk, comments: “The average rate is a good indication of what is going on...