Coventry Building Society has cut the rates on a number of its mortgages including its fixed-rate one.
The majority of new home buyers are currently choosing to take out a fixed-rate mortgage and they could benefit from the reduced rates.
From today (August 31st), some buyers can obtain a two year fixed-rate loan from the building society, which will charge 2.99 per cent interest.
This is one of the lowest rates available as the average fixed-rate mortgage's interest rates can amount to 3.29 per cent, reported the Telegraph earlier this month.
However, it would be wise for consumers to compare the different mortgage providers in order to find the lowest interest rates available for their property.
A three year fixed-rate mortgage will have interest of 3.59 per cent and a five year fixed-rate from the building society will charge 4.35 per cent.
Consumers could benefit from this lower rate as they will be accruing less interest on their mortgage, which means their monthly repayments could be lower.
Earlier this month, the Telegraph stated that consumers with a fixed-rate mortgage could be paying £1,700 extra a year than those with a tracker mortgage.
Grant Shapps, the housing minister,was quoted by the newspaper as saying: "Banks have enjoyed unprecedented support from the taxpayer and so it is important that they step in for the aspirational home owner with reasonable rates as the economy recovers."
Therefore, it seems as though the Coventry Building Society has decided to help borrowers by reducing its rates.
Account holders with Barclays could also save money as the bank will be introducing loyalty mortgages tomorrow (September 1st).
If a customer borrows an advance of £135,000 for their mortgage, they could save £922 over two years if they obtain a mortgage from the bank.
As more competitive rates seem to be emerging, potential home owners should compare all the options available to them.
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