A number of factors have contributed to this. Firstly, it’s widely
recognised that we are at or near the bottom of the interest rate
cycle. Base rate could only fall by another 0.5% at most and in the May
meeting of the Bank of England, base rate was held for the second month
in a row. Consumers are looking to secure a fixed rate deal whilst
rates are at their lowest. Best Buy Mortgages are available under 3%
fixed for 2 years and under 5% fixed for 5 years. fixed rate mortgage
deals compare favourably with historical rates linked to lenders’
standard variable rates (SVR).

Secondly there is widespread
concern that when rates start to rise, they will rise sharply and so
monthly repayments on mortgages linked to Bank of England Base Rate or
a lender’s SVR will increase significantly over a short period of time.
Securing a good fixed rate deal now will mitigate that risk.

Thirdly
there is limited availability of mortgages for those with relatively
small deposits (15% of house value or less) and so consumers in this
situation are grabbing fixed rate mortgages whilst they still can.

Finally,
as house prices have fallen, consumers have found that the value of
their mortgage relative to the value of their home has increased. As
the http://www.lcplc.co.uk/best-buys
best fixed rate mortgage deals are available below 75% loan to value
(ltv) it is sensible for consumers to fix their mortgage rate in case
their property value falls further and the best mortgage deals are no
longer available to them.

Potential borrowers wanting to secure a fixed rate mortgage deal can see the range of leading deals currently available at http://www.lcplc.co.uk/best-buys.For more information and no-fee advice, borrowers can call free on 0800 373300 or request a call back.

-Ends-

Notes to editors:
London
and Country Mortgages Ltd is the country’s leading whole of market
no-fee mortgage broker and submitted over £4bn of mortgages to over 70
lenders in 2008.
For more information visit our website http://www.lcplc.co.uk

L&C
is a Climate Neutral company and for the last seven years has invested
in climate friendly projects and tree-planting to help offset its
emissions and those of its customers.

L&C has won numerous awards including:

Best Mortgage IFA/Adviser of the Year – Money Marketing, 2004, 2005, 2006 and 2008
Best Technology Adviser – Money Marketing 2007
Best Mortgage Broker outside London – Mortgage Strategy, 2004 and 2005
Best National Broker – Mortgage Introducer 2005, 2006 and 2007
Best Overall Broker – Mortgage Introducer 2005
Overall broker of the year – Pink Home Loans, 2006 and 2007
Top 100 company in the Sunday Times Fast Track 100 for 2004 and 2005
Business of the Year – The Bath Business Awards 2005
Growth Strategy of the Year – National Business Awards (Wales and West) 2008
Business Leader (Broker) – British Mortgage Awards - 2008
Online Mortgage IFA of the Year – Financial Adviser - 2008

Press Contacts:

Richard Morea, Technical Manager
Office: 01225 341312
Mobile: 07970 885168

David Hollingworth, Head of Communications
Office: 01225 341211
Mobile: 07710 634044