One of the biggest mortgage providers in the UK, the Halifax, has announced more interest rate reductions on several of its home loan products.
The average mortgage rate reduction made by the Halifax is 0.25 percent, with most of its main tracker and fixed rate products enjoying this cut. Potential customers should be aware that they need to put down a deposit of at least 25 percent in order to receive this lower rate.
A Halifax spokesman explained that they were passing on recent reductions in the cost of borrowing that the banks charge each other, feeling it is in the interest of the market to offer the very best possible rate whenever possible.
Alliance and Leicester has announced a new tracker mortgage with a headline rate of less than 6 percent.
The new Alliance and Leicester mortgage is a two year base rate tracker with a 5.98 percent headline rate and a maximum loan to value of 75 percent. There is an arrangement fee of just under GBP1,000 and borrowers can take up to a maximum of GBP1 million.
The typical two year fixed rate mortgage rate has just gone over 7 percent so this sub 6 percent figure is certain to attract keen interest. It offers a real alternative for customers and shows them that the Alliance and Leicester are really doing what they can for customers.
Half year results from the Alliance and Leicester have shown profits at just GBP2 million, down from GBP290 million for the same time last year.
The biggest reason for this massive fall is the writedown of assets that the Alliance and Leicester carried out. This was done because of the worldwide credit crunch that has sent their asset values fall. The good news is that the market had been pre-warned about the write down so, even though it was a little more than was expected, industry experts were not too surprised.
Although investments have proved a difficult area for the Alliance and Leicester their mortgage business appears to be stable as do both personal and business banking. Numbers of mortgages provided are down but the quality is still good meaning bad debts are unlikely to cut into the bottom line.
