Best mortgage rates, remortgage deals,  equity release schemes
Impartial-Independent-Mortgage Advice

Site Search:

Add to Favorites - Compare mortgage ratesMortgage Update Newsletter

0800 801079


mortgage quote, remortgage quote, equity release quote Search mortgages

Two year fixed rates tumble

Two year fixed rates tumble
Announcements from both the Abbey and Alliance & Leicester would seem to indicate that attempts by the government and Bank of England to lower the cost of borrowing are beginning to have an effect. Both the Abbey and Alliance & Leicester are part of the Santander Group, which has more than 150 years experience in banking, and more branches worldwide than any other international bank. The move by this industry heavyweight means that it is virtually certain that other lenders will respond with their own rate cuts in the coming days and weeks.

The new rates are headed by those available from the Abbey, which include a 4.49% two year remortgage only fixed rate with an arrangement fee of £995 available for those wishing to borrow up to 60% of the value of their property. The scheme has a free remortgage valuation and the legal requirements of switching to the Abbey are arranged and paid for by them. The rate increases to 4.79% for those who wish to borrow up to 75% of the value of their property and is available for both purchase and remortgage applications, with the same £995 arrangement fee being payable.

The Abbey are also the first major institution to re-launch a range of tracker rate mortgage products after all lenders withdrew their offerings in a panic following the reduction on the Bank of England base rate last week. The new trackers are, as expected, re-launched with a higher margin over base than those which were withdrawn, but still offer an pay rate currently less than 5%. For loans of up to 75% of the property value, the new rates are 1.89% over base for remortgages and 1.99% over base for purchase applications, with arrangement fees being £499 and £995 respectively. As with the two year fixed rates, those who are remortgaging benefit from a free valuation and legal fees.

The Alliance & Leicester schemes are virtually the same as the Abbey schemes, with a two year fixed rate of 4.49% and a two year tracker rate at 4.89%.The main differences are that both products are available for purchases and remortgages of up to 60% of the property value, and are available for loans of up to £1million. This compares favourably to the Abbey rates where the maximum loan is restricted to £550,000. The arrangement fee is 1% of the amount being borrowed, and this makes the Alliance & Leicester schemes a particularly attractive option for home movers borrowing less than £90,000. Unlike the Abbey, those who are remortgaging are responsible for their own valuation and legal fees.


Follow the link for information on the
Best Mortgage Rates available
 

Related Articles

HomeBuy Direct offers housing hope

As Christmas approaches, there could be the tiniest glimmer of hope for the housing market in the Ne...
Published: 16-Dec-2008

Lenders make house price crash worse

According to the Royal Institute of Chartered Surveyors, it is the banks and mortgage lenders who ar...
Published: 10-Dec-2008

Banks Squeal Under Government Pressure

In a report published yesterday, the Council of Mortgage Lenders has tried to fight back against gov...
Published: 10-Dec-2008

Rate cuts have limited success

The Council of Mortgage Lenders have released statistics showing a slight increase in the level of m...
Published: 20-Nov-2008

Sign up for our eNewsletter

French, Spanish and overseas residential mortgages


Latest News:

HomeBuy Direct offers housing hope
As Christmas approaches, there could be the tiniest glimmer of hope for the housing market...
Published: 16-Dec-2008

Lenders make house price crash worse
According to the Royal Institute of Chartered Surveyors, it is the banks and mortgage lend...
Published: 10-Dec-2008

Banks Squeal Under Government Pressure
In a report published yesterday, the Council of Mortgage Lenders has tried to fight back a...
Published: 10-Dec-2008

Rate cuts have limited success
The Council of Mortgage Lenders have released statistics showing a slight increase in the ...
Published: 20-Nov-2008

Rss News Feeds

Mortgage News Feed

Best Mortgage Rates, Equity Release Schemes, Remortgage Deals, First Time Buyer Mortgages