More lenders cut mortgage rates
Updated on 28 July 2008
Two more lenders have announced they were cutting their mortgage rates as the cost of home loans continued its downward trend.
Lloyds TSB and its mortgage arm Cheltenham & Gloucester said they were reducing the cost of their deals by up to 0.38%, while the Woolwich, which is part of Barclays, is slashing rates on its buy-to-let mortgages by up to 0.5%.
The groups are the latest in a flurry of lenders to cut their rates following a fall in swap rates, upon which the cost of fixed-rate deals are based.
Other major players, including Abbey, Halifax and Nationwide, have all recently reduced the interest charged on their mortgage deals, prompting speculation that the trend for lenders to hike their rates as a result of the problems caused by the credit crunch may have peaked.
But there is still little sign that lenders are significantly loosening their lending criteria or reducing the deposits they demand from borrowers.
Lloyds TSB and Cheltenham & Gloucester are cutting the cost of their full-term tracker deal by 0.38% to base rate plus 0.95%, to give a current rate of 5.95%, for people with a 20% deposit who pay a £995 arrangement fee.
Other cuts, which come into force from Tuesday, include reducing the group's two-year fixed-rate mortgage for people with only a 10% deposit by 0.11% to 6.69%, and cutting its two-year tracker for people with a 25% deposit by 0.1% to a current rate of 5.89%.
The group has also introduced a new product range for people borrowing between £50,000 and £250,000, with two-year fixed rate loans of 5.99% for people borrowing 75% of their home's value, who pay a £1,995 arrangement fee.
The Woolwich has reduced its lifetime tracker for buy-to-let mortgages by 0.4% to 6.59%, while its five-year fixed-rate loan has been cut by 0.5% to 6.99%.
Nationalised bank Northern Rock also repriced its mortgage range for new customers, with some rates being cut and others being increased.
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