Lower mortgage rates to help people avoid debt?

Consumers attempting to avoid the need for debt help may be interested to find out the cost of a fixed-rate mortgage has fallen to a seven-year low.

Research carried out by Moneyfacts.co.uk has found the price of the product is 4.53 per cent, which is the lowest it has been since September 2003.

Michelle Slade, a spokeswoman for the company, said: “Lenders are trying to incentivise borrowers onto new fixed-rate deals by making significant cuts to rates.”

With the marker returning to some semblance of normality, she noted individuals with smaller deposits may be able to get a better deal.

Ms Slade added companies are competing to present the best offers for people, as everyone tries to take advantage of the “limited amount” of business there is available at the minute.

David Rodger, managing director of the Debt Advice Foundation, recently stated parents should receive financial education on the price of bringing up children.

Posted by Rory Mallon