Is this the cheapest mortgage deals ever

The people who are looking for homes are experiencing some of the cheapest mortgage deals.This is the first time the cheapest mortgage deals ever offered and home owners are spurred by it.According to property conveyancers LMS , the record lows in interest rates on home loans which fell to a typical 2.49 percent.Also , annual re-mortgage payments account for less than a fifth of household income.Furthermore , the numbers of homeloans approved to buyers climbed three percent month-on-month in june. The total value of £11.5 million some 66,582 mortgages were approved for house purchases which is higher than the longer term average of 62,971 monthly approvals.

Moreover, £6 billion worth 36,620 re-mortages were also approved in June .It is above the longer term average of 33,759 loans being handed out.

Some of the banks are offering cheap rate but the deposit must be 40%.Most of the banks launched new deals including HSBC at 2.99% for 5 years , Natwest at 2.99% for five years ,Santander 2.99% for 5 years and also Nationwide  for 4 years at 2.89%.Also bear in mined these deals only for those who can stump up 40% deposit.

Normally , the pricing of fixed rates can be dependent on many reason. The most effective one is whether banks can get their hands on cheap money to lend out.It usually happens when banks get from by borrowing from other bank or from savours.The banks normally do it on money markets at at specific rate , it calls, "Swap rate" for a certain period.

However, the "Swap rate" magically dropped again earlier this year.As a result , the deals were cheap as they have ever been.Ten-year fixed rates fell below 3pc for the first time in February and five-year fixes fell below 2pc for the first time in April.