A new Moneyfacts survey into mortgage and savings rates over the past year has revealed some interesting results.
The survey is based on the rates on offer in Moneyfacts best buy charts in December 2003 compared to December 2004. The Moneyfacts best buy charts show a cross section of some of the best products available on the market.
In December 2003, Bank Base Rate stood at 3.75%. In December 2004 this had risen to 4.75%. This increase would lead us to believe that both mortgage and savings rates would have risen by, on average, around the 1% mark. However, this hasn’t proven to be true.
Looking at the tables below shows that both mortgage and savings rates have in general risen by less than the 1%. Although this research has been taken from best buys, these are chosen from the whole market and so give us an indication of how the market in general has been moving.
Focusing on fixed rates, mortgages in this area have risen by as little as 0.04%. Similarly, fixed savings rates have only risen by 0.01% over the past year.
MORTGAGE TYPE AVERAGE RATE IN AVERAGE RATE IN CHANGE
BEST BUY DEC 03 BEST BUY DEC 04
Fixed rate - no tie-in 4.76% 4.80% +0.04%
Fixed rate - with tie-in 2.66% 3.06% +0.40%
Capped rate 5.46% 5.74% +0.28%
Discounted Variable rate 3.56% 4.67% +1.11%
Variable rate 4.35% 5.21% +0.86%
Self Cert 4.57% 5.06% +0.49%
100% 4.92% 5.76% +0.84%
SAVINGS TYPE AVERAGE RATE IN AVERAGE RATE IN CHANGE
BEST BUY DEC 03 BEST BUY DEC 04
No notice 4.26% 5.18% +0.92%
Notice 4.29% 5.15% +0.86%
Internet 4.11% 5.30% +1.19%
Fixed 5.31% 5.32% +0.01%
Current 3.20% 3.98% +0.78%
Rates correct as at 15th Dec 2004 – source www.moneyfacts.co.uk
