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Mortgage rates plummet to lowest level on record

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Average mortgage rates plunged to 2.83% in the second quarter of 2015, the lowest level since figures started to be recorded in 2007.
Joint Bank of England and Financial Conduct Authority (FCA) figures showed fixed rates fell to 2.91%, with variable rates dropping to 2.5% in the second quarter, compared to quarter one of this year.

The overall average interest rate on total amounts outstanding decreased to 3.17% in Q2 2015, the lowest since the series began in 2007.

The figures also showed mortgage gross advances were up 15.1% quarter-on-quarter this year.

Mortgage lending increased from £47.2bn in Q1 to £59.3bn in Q2, an 11% increase on 2014, of which 79% were fixed rate loans, an increase of 1% since the first quarter.

First-time buyers borrowed £10.8bn, an increase from £8.9bn last quarter, but falling from figures recorded in Q2 2014. Meanwhile, buy-to-let lending rose from £7bn in 2014 to £8.3bn in Q2 2015.

Arrears were 5.5% lower than in Q1 2015 and was the lowest since the series began in 2007.



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