More Good News on the Mortgage Front

Posted on 22 July 2008 by Ray Boulger

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On Thursday Bank of Ireland will reduce the rates on all their mortgages by between 0.25% and 0.7%. They currently only offer 3 and 5 year fixed rates.

They are one of the few lenders still offering 95% mortgages, albeit only on their 1start scheme, which is aimed at First Time Buyers and requires a parent to go on the mortgage with the son or daughter. The rate on this deal, a 3 year fix, is being reduced by 0.4% to 7.49% with a £799 arrangement fee and no Higher Lending Charge.

Also particularly encouraging for First Time Buyers is the fact that the biggest reductions (0.7%) are on their mortgages with a maximum LTV of 90%. The rate on these is coming down to 6.99%, but with a 1% fee. Better rates are available elsewhere but it is unusual and welcome in this market to see a lender making its biggest cuts on their higher LTV mortgages.

These changes follow the launch tomorrow by Abbey of some new products and reductions, generally of about 0.1%, in the rate of some existing ones, both signs that some competition is creeping back into the mortgage market.

 


Categories: Mortgages, Interest rates


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