15
Aug
Lenders cut more mortgage rates
Another round of rate cuts has been announced by the Halifax, one
of the UK's biggest mortgage lenders. Several of its most popular
fixed or tracker-rate deals are being cut by an average of 0.25%,
for borrowers who can put down a deposit of at least 25%. The
changes apply to deals arranged through mortgage brokers. The new
rates highlight the trend of recent weeks in which many lenders
have made a succession of small reductions to cut headline rates to
6% or less. 'We are simply passing on the recent cut in swap rates
(the cost of borrowing between banks),' said a Halifax spokeswoman.
WIDER RANGE In the past week, other lenders, such as the Newcastle
building society, Yorkshire building society and the nationalised
Northern Rock, have also reduced the cost of some of their deals.
'Most lenders have been cutting selective rates rather than
everything, said Ray Boulger of mortgage brokers John Charcol.
Other lenders, such as the Bristol & West, Woolwich and the
Coventry building society, have also started to widen the range of
mortgage deals they offer. For instance, the Coventry, and also the
Britannia building society, now offer their best deals to customers
who can put down a deposit of at least 50% of a property's value.
Mr Boulger said lenders now appear to have become a bit more
relaxed about lending than they were earlier in the year, with the
cost of loans where customers put down a 10% deposit also becoming
cheaper. 'More lenders will come in with cheaper fixed rates in the
next week or so,'he predicted. REPORT FROM BBCNEWS.CO.UK, 15.08.08