Mortgage rates cut by Rock and the Woolwich
Wednesday 07 October 2009
Northern Rock yesterday slashed mortgage rates in a move experts said could inject further life into the housing market.
It came on the same day that the Woolwich – owned by Barclays – made a similar move and follows several other banks that have reacted to cheaper funding costs by cutting their rates.
Northern Rock said it would offer two-year flexible fixed rate mortgages at 3.75 per cent to those borrowing up to 70 per cent of a home's value. A tracker of 2.20 per cent plus base rate is also on the table, while arrangement fees have been cut by as much as £400. Previously, the state-owned bank would only offer its best deals (4.09 per cent in the case of the two-year fix) to anyone borrowing 65 per cent of a home's value.
Woolwich cut rates by 0.4 per cent on its leading tracker mortgage to 2.79 per cent (base rate plus 2.29 per cent) for people borrowing up to 70 per cent of a home's value. Fees are £995 but there is a fee-free option at 3.19 per cent (base rate plus 2.69 per cent).
Ray Boulger, senior technical manager at John Charcol, said: "These are significant moves. Northern Rock has cut their best rates quite significantly. Banks are seeing their funding costs decreasing, which is resulting in better deals and could help the housing market." Northern Rock cannot compete too aggressively if the bank is to avoid violating EU rules concerning state aid given to banks.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Germanwings plane crash: Video shows co-pilot Andreas Lubitz learning to fly as a teenager
- 3 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 4 Germanwings crash: Captain of doomed plane was only 'on board because he changed job to spend more time with his children'
- 5 WrestleMania 31 results: Seth Rollins stuns WWE as he cashes in Money in the Bank contract to claim title from Brock Lesnar
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Children take eight Isis captives to be beheaded in latest propaganda video
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£32000 - £38000 per annum + benefits: Ashdown Group: A highly successful, inte...
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...