Fix Mortgage Rates Cut by Lenders – Mortgage Comparison News
Good news for anyone currently looking to get a decent deal on a new mortgage in the near future – two more lenders have decided to cut the interest rates payable on their fixed rate mortgages.
The latest two lenders to reduce the rates are Nationwide and Abbey, who join an already long list including First Direct, the Post Office and Yorkshire Building Society. So far 13 lenders have now reduced their rates.
This ?rate war? has been great for consumers and has reduced the typical interested on a two year, fixed package from 4.93% to 4.86% in just the first few weeks of this month.
Nationwide has cut its rate by as much as 0.29%, and the cost of their tracker deals have also fallen. A two year tracker for someone who already has a30% deposit now starts at 2.64% with an initial fee of ?995.
Abbey have cut their four year fixed mortgage rate by 0.1% while also introducing brand new three year and five year deals.
But Newcastle Building Society and the Post Office are leading the cuts with other 1% reduction for their fixed rated offers, the latter also reducing the amount needed for a deposit from 25% to 20%.
John Charcol broker Ray Boulger commented on the new drops in rates:
?Over the past month we have seen a continuation of the impact of a modest increase in competition from mortgage lenders and this has been particularly evident in the two-year fixed-rate market.
However, what is more important for the health of the property market than modest reductions in rates available for borrowers only requiring a relatively low loan to value ?is the fact there has been a significant increase in the number of mortgages available up to 80%, 85% and even 90% LTV.?