Abbey cuts cost of fixed-rate mortgages
Friday 11 July 2008
Abbey has become the latest bank to cut the cost of its fixed rate mortgages as the cost of wholesale funding continued to ease. The group is reducing the cost of its two- and three-year fixed rate deals by up to 0.15 per cent from Monday – the lender's second cut in 10 days. Abbey said it had made the reductions following an easing in swap rates, upon which the deals are based.
The news comes the day after Barclays' lending arm The Woolwich cut the rate of its lifetime trackers by 0.1 per cent and its fixed-rate products by up to 0.3 per cent. Other lenders have also made reductions in the past week.
The downward move is good news for homeowners, despite yesterday's decision by the Bank of England's Monetary Policy Committee to keep the official cost of borrowing at 5 per cent.
Abbey is reducing its two-year fixed-rate deal for people who borrow 75 per cent of their home's value and pay a £999 arrangement fee to 6.34 per cent, while a comparable three-year loan is being reduced to 6.29 per cent. For its best rate, homeowners need a 30 per cent deposit, with Abbey introducing a new three-year fixed rate deal of 5.99 per cent with a £1,695 arrangement fee.
Research from Spicerhaart Financial Services showed that homeowners are opting for longer-term fixed deals for better security and lower rates. Just 18 per cent of a sample of 1,000 mortgages taken out in June were two-year fixed-rate loans, down from 60 per cent 12 months ago.
- 1 The political parties aren't all the same – which means 2015 will be a 'big-choice' election
- 2 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
New York police shooting: thousands turn out for the funeral of Rafael Ramos
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...