There are signs the mortgage market is recovering from the credit crunch

Mortgage rates are back to where they were in August 2007 at the onset of the credit crunch, according to research by price comparison website Moneyfacts.

The average rate on a two-year fixed deal is now 6.59% – almost the same as 6.56% in August 2007 and down from 7.08% in early July.

However, the costs associated with mortgages remain high, Moneyfacts said.

The better rates are only available to those with big deposits and lenders are also charging higher fees.

Moneyfacts said that the average mortgage arrangement fee was now £964 compared with £803 in August 2007.  Full Article