The Bank of England released figures today showing an 18 month high in mortgage approvals this further underpins the view that the housing market continues to strengthen.

Still, to mix my metaphors, with every silver lining theres a dose of reality. The latest data from the Bank of England has revealed that major lenders are expecting to increase mortgage fees in the coming months, to compensate for a reduction in spreads. Or, to take another view, because they can.

What does this mean? Well, it will probably effect the residential mortgage market the most, as lenders will be looking to reduce their rates as the market gets more competitive but may well be countering these rates with higher fees.
At the moment though, we are seeing (almost on a weekly basis) a reduction in residential mortgage rates, and if you have a low loan to value with provable income, then there are some very competitive rates about. For lifetime trackers rates, they start from 2.79% (free legals and valuation, £995 fee) to 5 year fixed rates from 4.99%. Worth considering for the Tip of the Week 1 below.