The latest offer in the mortgage market comes from Lloyds TSB which has introduced a new Airmiles mortgage.
The Lloyds TSB mortgage is not as novel as it sounds, the Airmiles being provided for taking out the mortgage, customers are not able to pay it off using them. The three tear fixed rate offer gives customers 50 Airmiles when signing up plus a further 6,000 when it is completed. The interest rate on the mortgage begins at 5.89 percent depending on applicant circumstances.
As a spokeswoman from Lloyds TSB said, this new mortgage combines a good rate of interest, a decent length fixed term and also a practical and useful reward that customers can use.
Well known high street building society the Alliance and Leicester has just announced some new mortgage offers offering a variety of options for housebuyers.
Fixed rate mortgages are very popular right now as people look to get some stability with their repayments. To this end the Alliance and Leicester mortgage offers include two new fixed rate options. Their five year fixed rate deal will cover up to 90 percent of the property price and stands at 7.14 percent interest. There is also a shorter two year rate, quoting just 6.14 percent interest but restricted to those able to put down a deposit of 25 percent or more.
Catering for the variable rate market the Alliance and Leicester have also introduced a tracker mortgage that follows the Bank of England base rate. Of course this does not ensure a fixed repayment amount but the interest rates are currently lower than the fixed rate alternatives so can prove enticing.
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.
