New mortgage customers at the Halifax will have to pay a little more for their home loans from today if they are taking out a tracker or fixed rate mortgage product.
The Halifax tracker mortgage rate goes up to 6.29 percent from 5.99, which is 1.29 percent above the base rate set by the Bank of England. Meanwhile the three year fixed rate mortgage offer rises to 6.44 percent, up from 6.22. A Halifax spokesman clarified that the increases will apply to just 5 of the 32 different tracker mortgages they offer and 19 of the 31 different fixed rate mortgages provided.
In that context then there are still many opportunities to avoid paying the extra interest, though of course the Halifax mortgage products that have been selected are the ones that will be the most popular.
Special Summer offers have been announced by the Co-op, better known in financial circles as CIS. Their key offer is on a three year tracker mortgage that is only available to CIS current account holders.
The first thing to notice is the sub 6 percent interest rate – 5.99 percent when customers can provide a 25 percent deposit. There is also no fee on this particular mortgage, something that is refreshing in the mortgage market of today. Customers will also be pleased to see that there are no legal fees and remortgage customers can also receive a free property valuation.
There is great flexibility in this CIS mortgage too, with the option to overpay and thus reduce the total repayment term and interest. Payment holidays are also available to help customers manage their expenditure from time to time.
The Abbey National announced rate cuts on some of its mortgage products at the weekend as well as bringing out two new fixed rate mortgage offers.
Some of the Abbey National two year tracker mortgages have seen rate reductions of up to 0.2 percent, with the lowest introductory rate now standing at 6.04 percent. One of the new mortgages offered by the Abbey is a 10 year fixed rate mortgage, with a lowest rate available of 6.25 percent.
An Abbey National spokesman explained that it was the strength the big high street name had in the mortgage market that made these rate cuts possible. The bank also feels that the 10 year fixed rate mortgage is going to prove very popular, combining as it does an attractive interest rate and a long fixed term period.
