Cost of mortgage debt falls

Figures from the Bank of England (BoE) have revealed that the cost of servicing a two-year fixed-rate mortgage debt has fallen to a six-and-a-half-year low during February, The Independent reports.

The average cost of a two-year loan fell to 3.88% in February - down from the 3.97% recorded in January, meaning the rate is at its lowest level since July 2003.

The cost of servicing a five-year fixed-rate mortgage also fell, dropping from 5.56% to 5.49%.

Meanwhile, the cost of servicing unsecured debt increased or remained the same during February. The average interest rate charged on credit card debt increased from 16.37% in January to 16.51% in February - marking the fifth consecutive month during which the rate has risen or stayed the same. Interest rates on loans and overdrafts `remained unchanged` during the month.

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