Further Falls for Fixed Rate Mortgages in July 2010
The base rate was left unchanged by The Bank of England last week, meaning that fixed-rate mortgages are still falling both for those looking to remortgage and those house hunting.
Cuts of up to 0.2 per cent on fixed-rate loans have been made by Santander, the owners of Alliance & Leicester and Abbey. Those borrowers with 25 per cent equity or a 25 per cent deposit can now take out a mortgage with a five-year fixed rate of 5.25 per cent, a fall from 5.44 per cent.
There has been a fall of 0.2 per cent for new buyers taking out loans with a two-year fixed rate, down to 3.19 per cent from 3.39 per cent. To qualify for this loan borrowers need a 30 per cent deposit. For those borrowers who are remortgaging the fall is 0.1 per cent, down to 3.29 per cent from 3.39 per cent.
Similarly the two-year fixed-rate loan offered by Northern Rock was cut from 4.59 per cent to 4.35 per cent for those with 20 per cent equity or a 20 per cent deposit. Those who have 15 per cent equity or a 15 per cent deposit can get two-year fixed-rate loans at 4.89 per cent, down from 5.29 per cent.
Likewise a cut of 0.15 per cent has been applied by ING Direct to all its fixed-rate loans. A two-year fixed-rate deal of 2.99 per cent has been launched by Skipton Building Society for borrowers with a 40 per cent deposit.
"The picture is looking rosier for borrowers keen to fix mortgage payments. Competition among lenders is hotting up and it is good to see homeowners benefit," said David Hollingworth, from broker London and Country Mortgages.
Mortgages news posted by Garry on 13 July 2010
