Britannia launches five-year fix at 5.99%

Britannia Building Society is launching a new five-year fixed-rate mortgage on Friday 18th July.

The loan will be available at a rate of 5.99% on loan-to-values (LTVs) of up to 75% and 6.39% on LTVs up to 90%. A £999 arrangement fee applies in both cases.

The lender is still offering its existing five-year fixed-rate mortgages, one of which has an arrangement fee of £499, while the other is fee free. Rates vary depending on the LTV ratio.

Britannia’s announcement follows yesterday’s news that Nationwide is cutting rates on some of its fixed and tracker mortgage deals by up to 0.46%.

Meanwhile, mortgage broker, John Charcol, is optimistic that fixed-rates will now begin to come down.

Money market swap rates, which determined fixed mortgage rates, have remained stubbornly high in recent weeks and despite large numbers of borrowers opting for the security provided by a fix, tracker and variable rate deals have been offering equal or better value.

However, John Charcol is interpreting recent rate cuts by Nationwide, Northern Rock, Abbey and Woolwich as a sign that cheaper fixed-rate deals should soon be on the market.

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