Are borrowing costs coming down? London Mortgage Broker, London Mortgage Advice Friday, 14th May 2010

Borrowing costs are slowly coming down, indicating an improvement in mortgage conditions says Bernard Clarke, spokesperson at the Council of Mortgage Lenders.

The cost of a fixed-rate mortgage has fallen to its lowest level since records began in 1995 asis comments come in response to new data from the Bank of England, which showing this.

Marking a decline from the previous month when the figure stood at 3.92 per cent, in April, a 75 per cent loan-to-value two-year fixed-rate mortgage would have an interest rate of 3.83 per cent.

There are still problems that need to be addressed in the housing market Mr Clarke believes however. He states: "There is still a longer-term problem in terms of filling a funding gap that will be created by the removal of the various Bank and government support measures." According to the Bank of England, some 48,901 new mortgages were approved in March, in comparison to February's figure of 46,882.