If you can, just hold off arranging a mortgage for a few weeks. Cheaper mortgages are on the way!

If you want to start off 2006 with a new mortgage, hold fire for a few weeks. Cheaper rates are on their way! Cheltenham & Gloucester and Northern Rock have already introduced some lower rates, and more will follow.

The cost of fixed rate remortgages is especially likely to fall. Thats because the mortgage lenders price their fixed rate mortgages according to the money markets “swap interest rates”. These interest rates reflect how the money market expects rates to move in the future and theyre on their way down.

Two year swap rates peaked at the end of December at 4.75% and in the past few weeks have fallen to the 4.5% - 4.4% range. That means mortgage lenders can afford to trim their rates and with so much competition in the mortgage market, cheaper deals are certain to follow. Great news if you want a mortgage and are prepared to fix your payments. (mortgage deals)

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