Banks are slashing rates on riskier mortgages despite a warning from the Bank of England that it is watching them “like a hawk”.
Rates on 95% mortgages have dropped to an average of 3.24% on two-year fixes, near the record low of 3.23% according to Moneyfacts.
The market share of riskier mortgages is also at it highest proportion since the financial crisis, with mortgages of 90% or higher LTV accounting for 5.9%.
