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.
Looking at activity in the housing market the Ntionwide Building Society sees that the most popular type of property for a first time buyer is the traditional terraced house.
Figures show that approximately 38 percent of people looking to get on the property ladder go for a terraced house, preferring these over other types of accommodation. In the housing market as a whole just over 25 percent of houses bought are terraced so the preference for terraced houses for first time buyers is considerable.
Logically it makes sense that this is the case since terraced properties tend to be both smaller and less expensive to buy than larger places. This means they can be better suited to a first time buyers requirements and also easier to get a mortgage for since the cost is less. The Nationwide Building Society has seen that prices for terraced houses are rising quickly though.
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
