Lenders cut fixed-rate mortgages

Abbey National and the Yorkshire Building Society have become the latest lenders to lower their fixed-rate tracker mortgages.

The moves come on the heels of a long-awaited cut in the Bank of England’s base rate of borrowing and are being seen as an attempt to maintain market competitiveness.

Mortgage products available from Abbey now include two or three-year deals at 5.89 per cent interest; a five-year deal at 5.79 per cent; and a range of ten year mortgages with between 5.64 and 5.94 per cent interest.

The Yorkshire Building Society meanwhile has a selection of low-interest deals, including a 5.49 per cent fixed mortgage for between two and ten years. That product comes with an arrangement fee of £999 and covers up to 75 per cent of the value of a property.

While fixed-rate mortgages have steadily become more affordable in recent months, the Bank’s latest cut in interest rates to 5.5 per cent has yet to be passed on to many tracker mortgage customers.

HSBC and Northern Rock are still to pass on the relief to homeowners, while other banks have introduced cuts that fall short of the Bank’s quarter per cent reduction.

© Adfero Ltd

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