Mortgage rates continue to head south
Posted on 19 August 2008 by
More good news for the mortgage market with the announcement from Lloyds TSB that it is cutting its mortgage rates for the second time in two weeks amid signs that real levels of competition are returning to the market. The lender, which also owns Cheltenham & Gloucester, is reducing its mainstream fixed rates by as much as 0.31%, with trackers coming down 0.1%.
This news comes just days after Halifax, the UK's biggest mortgage lender, announced cuts of up to 0.45% across all its fixed rate mortgages and tracker rate mortgages.
Swap rates, which are the rates that banks borrow money from each other at and a key driver for fixed rate pricing, have fallen sharply over the last month, down to 5.4% from a peak of 6.5%. Thus has clearly helped the UK mortgage market with better products arriving all the time.
That said, the best deals are still only available for those with a 25% deposit, but the times they are a changin'.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and neither John Charcol nor Drew Wotherspoon will accept liability for them.