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.
A study carried out by the Lloyds TSB mortgage department has found that the days of the removal man may be numbered as people take a do it themselves approach.
The bank surveyed their mortgage customers and found that over half of them were planning to move into their new home under their own steam, without employing professionals to move their goods. Lloyds TSB also found that the estate agent was being cut out of 10 percent of home sales as vendors sold privately.
A Lloyds TSB mortgage department advisor commenting on the results suggested that the economic climate could be driving these changes. The average cost of employing a professional removal company is over GBP7,000 so being able to save a lot of that makes good sense.
The Abbey National has today announced mortgage rate cuts on several of its home loan products, specifically the fixed rate and flexible mortgages.
All of the Abbey National flexible offset mortgages have had a rate cut of 0.2 percent, as have the five year fixed rate offers, while three year tracker mortgages have received a reduction of 0.1 percent. They have also stated that more reductions will follow, these being on the two year and three year fixed rate mortgages, where rates could come down by a quarter of 1 percent.
A spokesman for the Abbey National stated that they wanted to do the best they could for the customer, delivering the best possible deal whenever possible. It is also hoped that the cutting of rates across the market will stimulate activity in the housing market.
