Over the past few months we have become conditioned to expect that when lenders announce they are withdrawing mortgage products, the replacements will be more expensive.
There are two main reasons for this. Firstly, the cost of borrowing for lenders has remained stubbornly high, despite the Bank of England introducing £50 billion to try and ease the pressure, and secondly, lenders appetite for lending has shrunk.
However, this week has been pleasantly different, as we have seen the majority of lenders who have made changes, actually reducing their rates and launching some very competitive fixed and tracker mortgages, for both owner-occupier and buy to let applications.
Abbey are cutting their 2 year fixed rates on Monday 14th which will be their second reduction in 7 days, with the rates coming down by as much as 0.29% in total. They are also reducing the increasingly popular fixed term of 3 years by 0.15%
Woolwich have cut some fixed and tracker deals by up to 0.3% and introduced a new 3 year fixed rate, while Nationwide have reduced both their fixed and tracker deals over 2 years. Even Northern Rock have joined in by reducing some deals for home movers.
From Sat 12th Halifax are reducing their 2 year fixes by a whopping 0.57%, and reducing the arrangement fees, as well as making improvements to their large loan deals.
London and Country also have some exclusive products which include market leading no fee fixed rates, as well as a competitive 5 year fixed for buy to let customers. The buy to let deal offers a fixed fee, an attractive rental calculation as well as free valuation and legal work for remortgage customers.
For full details and advice on the most suitable product from the whole of the market, call us today.