As Cost of Living Rises – Mortgages Rates Begin to Fall

British Gas is the latest company to announce price rises this week adding to the cost of living and putting even more pressure on tight family budgets. However, on the flip side, mortgage rates are starting to fall (albeit if you have a reasonable deposit) – offering some consumers an opportunity to save money.

The announcement by British Gas today that they will be increasing their charges to customers by approximately 6%, following the price rise already announced by SSE (Scottish Hydro, Swalec and Southern Electric) of an increase of 9% this coming Monday will add even more pressure onto already stretched household budgets.

Consumers have also been recently impacted by rising food prices fuelled by flooding and drought affecting crops across Europe the US and Russia.

However, fortunately, some respite is at hand if you have a reasonable deposit or amount of equity in your home.

Ten lenders have so far cut their mortgage rates this week offering cheaper home loans for customers who are either looking to purchase a property or remortgage their existing home to get a better deal.

Today for example, Abbey for Intermediaries have cut their lowest price 2 year fixed rate mortgage from 2.89% to 2.69% representing a saving of £200 per year based on a £100,000 interest only mortgage.

To find out if you could save money, Capital Fortune have provided a Mortgage Quote tool that will list the latest mortgage rates online instantly based on the information you provide.