A number of Abbey National mortgages have had their rates of interest reduced it was announced today, though the reductions are very modest.
All Abbey National tracker and flexible rate mortgages are seeing an interest rate cut of 0.05 percent, whilst some of the fixed rate mortgages are coming down by 0.17 percent. The ones seeing these bigger reductions are the safer options for the lender, namely seventy-five percent loan to value mortgages. This means the borrower had to put down a deposit of twenty-five percent. The five year fixed rate for this sort of Abbey National mortgage is therefore down from 5.92 percent to 5.75 percent.
An Abbey National mortgages spokesperson explained that the focus of the lender was to offer choice and value. To this end they have reduced rates on a variety of mortgages as the opportunity has arisen in order to deliver competitive products to their customers.
Find the best rate on an Abbey National mortgage at Moneygossip.co.uk
As of 17 June the Nationwide Building Society mortgage rates will be increased by up to 0.5 percent on a number of their products.
New customers taking fixed rate or tracker mortgages, as well as those remortgaging, will face higher interest rates, a situation that the nationwide Building Society is blaming on the increased cost of borrowing between financial institutions. Looking at the broader picture the interest rate on a 2 year fixed rate mortgage with a five percent deposit is around 1.4 percent more than it was just a year ago.
A Nationwide Building Society spokesman defended the changes, explaining how their costs had increased and left them with no other option but to pass on some of that cost to their customers. They were not alone in increasing their rates either, with many other big name lenders increasing their rates too.
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.
