Mortgage Rates Cut
A number of mortgage providers have, or are expected to, reduce the interest rates on the products they offer – a far more positive move than earlier in the year when costs were rising steadily.
As lenders cut mortgage rates in a bid to attract new customers homeowners can breathe a tentative sigh of relief - this latest news signifies a more competitive marketplace for borrowers.
Alliance and Leicester have reduced their rates on a number of products, including rates on fixed and tracker mortgages, by as much as 0.55%. They are now offering fixed-term loans of up to £250,000 at a rate of 6.19%, down from 6.64% earlier in the year.
Other lenders to slash rates include the Britannia Building Society where, with a £999 fee and 25% deposit, borrowers will now be able to take out a two year fixed mortgage for a rate of 5.44%. This has fallen from a rate of 5.64%.
Woolwich are offering three year fixed rate mortgages for a fee of £995 and a rate of 5.69%, which is a reduction of 0.28% on previous rates for this product.
Halifax also cut rates yesterday and it is also expected that Abbey will announce new rates on their products tomorrow. These latest cutbacks, combined with Gordon Brown’s announcement to scrap stamp duty on houses up to £175,000 yesterday, could see the start of a turnaround in Britain’s recent housing slump.
Not all news has been positive however, as both Alliance and Leicester and Britannia Building Society have also announced that they will also be cutting rates on fixed rate savings bonds. Savers will find that rates for these products will be reduced by up to 0.2%, perhaps to accommodate the rate changes that have been made to other products, namely mortgages!
