Earlier this year it was reported that mortgage rates on fixed-rate mortgages had hit a record low – dropping to prices that hadn’t been seen since 2007. Now, just a few months later, rates on mortgages across the board have continued to drop substantially, even re-mortgages on homes that had previously been refinanced during “less than desirable” mortgage periods.

The cause for this continual drop lies primarily in the fact that many lending institutions have found that the mortgage market has become substantially more stable in recent months following the strong real estate market trends as well as the continuation of the low base interest rate by the central Bank of England. These, among other factors, has helped to create a highly competitive lending market wherein many lending agencies are actively competing with each other to offer the most beneficial rates possible on their mortgage offerings.

For consumers this is excellent news as, naturally, higher competition results in significantly better offers for all those looking at sourcing out financing either for the purchase of a home for the first time or others who are simply looking to expand their housing portfolio.

Unfortunately to take full advantage of these rates as they stand on the market many prospective buyers may still need to provide a large amount of initial funding for a down-payment in order to secure the best rates possible on a loan. Some lending institutions may require up to a 25% down payment in order to secure the best rate possible, with others offering slightly less of a minimum down payment requirement to still realize some decent rates.

Whether or not the lending requirements for new purchases will adjust with the higher competition levels found in the market today is another matter of speculation, especially as recent figures indicate that housing supply is currently outpacing demand and could subsequently have a negative impact upon the overall lending industry.