Rate cut round up
This week has seen a round of rate cuts from High Street lenders, as competition appears to be returning to the market.
Royal Bank of Scotland and NatWest have announced interest rate cuts of at least 0.10% on their new fixed and tracker mortgages, while rates on some other deals are being reduced by up to 0.30%.
Abbey is making itself attractive to new borrowers by lowering its two and three-year fixed and tracker rates by up to 0.1%.
The bank, which has just overtaken Halifax as the UK’s leading provider of new mortgages, made similar cuts last week.
Its most competitive two-year tracker mortgage now comes with an interest rate of 5.89% while a two-year fix has come down to 6.19% (fees apply in both cases).
Also this week, Halifax cut the cost of 30 homeloans, reducing interest on a two-year fixed rate by 0.38%; its sister company, Bank of Scotland, cut rates on 36 deals, by up to 0.7%.
In related news, a recent survey from Abbey suggests that a significant number of homeowners are uncertain about the future direction of interest rates.
Forty per cent of those questioned said that if they had to choose a loan before the Bank of England’s base rate review this week, they would be confused over whether to opt for a fixed-rate or a tracker mortgage.