Average two-year fixed rate mortgages peaked at 7.08% at the beginning of July, since then numerous lenders have passed on cuts to their mortgage ranges. Today the average mortgage rate has dropped to 6.39%, which is around the same level seen just prior to the onset of the credit crunch
Last year the market for sub-prime was so competitive that some rates being offered were only fractionally higher than standard residential rates. Now, as lenders continue to factor in margins for higher risk, sub-prime customers are paying the price with rates up to 2.75% higher than the same time last year.
