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.
Effective from 16 May the Nationwide Building Society will have reduced interest rates on both two year and five year fixed rate mortgages.
The two year fixed rate mortgage will have a new rate of 5.95 percent with just a GBP599 arrangement fee. There is also a fee-free Nationwide Building Society two year foxed rate mortgage that will be available at 6.35 percent. These rates are for people moving house but there is also a remortgage offer, with rates of 6.15 and 6.55 percent respectively for the same mortgage offers as above.
The longer five year fixed rate mortgage can be had at 5.85 percent for house purchasers, again with a GBP599 fee, while the remortgage option is 5.95 percent. Customers coming to the Nationwide Building Society to change mortgage from a different company are also entitled to a special offer on a five year fixed rate mortgage, with no fee, at 5.95 percent.
According to new research many homeowners are not taking an active role in understanding and managing their mortgage.It has become clear that many homeowners do not understand the fundamentals of their mortgage and this is stopping them to achieving savings.Many homeowners tend to forget about their mortgage deal and just see it as a one off purchase to aid in them buying a property. But they are in fact missing out on saving a lot of money by not taking a more active role to learn and understand fully about mortgages. Research found that a large majority of mortgage payers did not even know what interest rate they were currently paying on their mortgage deal. This lack of interest by these homeowners could cost them a fortune in years to come if they do not take more interest in their finances. Knowing when to switch mortgages deals at the right time to get a lower rate of interest can save homeowners thousands of pounds. See our mortgage comparison table for more information or our guides and tips pages.
