Competitive New Mortgage Rates by Two Mortgage Giants

Lloyds TSB and Abbey, two of UK’s largest mortgage companies are ready with a whole new range of cheap tracker and fixed-rate mortgages at below five per cent and passing some of Bank of England’s drastic cut in interest rates last week to 3 per cent from 4.5 per cent. Most of the important banks are being forced to pass on the entire interest cut to the present Mortgage customers on standard variable rates. However, a fear is lurking in the minds of the new customers who think they would miss out on the fresh mortgage rates altogether. Abbey however, has announced that its two year fixed-rate deal for individuals who have a 25 % deposit, has dropped from 5.54 per cent to 4.99 per cent last week. The picture is even better for people with a larger deposit. The tracker program has been re-introduced by Abbey after withdrawing it from the market last week. Customers of Lloyds TSB and its sister concern Cheltenham & Gloucester have more reason to smile since they are offering customers with a 40 per cent deposit, a two-year fixed rate deal at 4.99 per cent. However, both Lloyds TSB and Abbey are not offering a discount rate for people with small desposits. This comes as a serious blow especially for first time home buyers. Experts are surprised at the competitive mortgage rates and say that it is good to look at rates hovering around 5 per cent but a rate like 4.49 per cent is more than one has expected. If rates continue to fall at this rate, home loan owners are in for a good deal.

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