The recent survey conducted by the Bank of England found that lenders reported they are easing restrictions for lending and becoming more open to risk.  They also are planning on providing more mortgage products and to continue to offer competitive interest rates.  The credit for attractive deals and the availability of mortgage products is being given to the government’s Funding for Lending scheme.

The survey also showed that lenders plan on increasing the number of mortgages across all loan to value ratios. 

Experts are forecasting that the Funding for Lending scheme will begin to have a larger impact on those that need to borrow larger amounts and have lower deposit levels.  Previously the best interest rates were being reserved for those with large deposits for a house purchase or for homeowners remortgaging with large equity levels.  Now lenders are more competitive and looking for business.  The competition is pushing lenders to offer lower interest rates to those with lower deposits and lower equity levels.

As always, there is still the advice to look at any mortgage or remortgage deal as a whole and not just the interest rate offer.  The lowest interest rate may or may not be the best deal due to fees that are associated with the offer.  The borrower should take into consideration fees, valuation costs, legal costs, and the savings offered with the interest rate in comparison to other offers.  There may also be costs associated with the ending of a mortgage deal earlier if it is a remortgage that is being considered.