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According to a recent report the interest rates on fixed rate mortgages have started to come back down again after hitting an eight year high in June of this year. Since hitting the almost decade long high, interest rates on fixed rate mortgages have come back down for the month of July according to recently released figures.

Figures have been released by the Bank of England, and have shown that in June interest rates on fixed rate mortgages rose to an average 6.6% in June, which was a rise from 6.26% in May, and this was for borrowers that were able to put down a sizeable deposit of around 25%. However, the figure has now fallen back down again to an average rate of 6.5%, a slight fall from the June figure.

The cut comes after a number of lenders reduced the interest rates on various mortgage products in light of a fall in the swap rate, which is indicative of mortgage interest rates. A number of lenders have recently announced cuts in their fixed rate mortgage interest rates, although credit conditions still remain tight as a result of the ongoing global credit crunch that has hit the nation.

One mortgage broker said that some lenders had cut the interest rate more than once in the space of a week, and this had resulted in some of the cuts being quite significant. He added that there was little doubt that the average rate on fixed rate mortgages was lower for July than for June, although it was still higher than it was in May.

Whilst the average interest rate on fixed rate deals was high in June, it was significantly lower than in October last year, when it shot up to around 7.74%. However, since then the Bank of England has cut the base rate three times, taking it from 5.75% to 5%, where it has remained since the last cut in April.