by Mark Johnston
More Lenders Announce Yet More Rate Cuts.
Official figures shows lending for house buying has surged to a five year high.
Research has shown that the choice of mortgage products for home buyers in the UK have surged and the latest round of offers from lenders see rates cuts and fees reduced.
Borrowers with 25 to 35 per cent deposit or equity will be able to take advantage of these lower rates, which are offered with and without fees. In addition to reducing its rates, the internet and telephone bank also offers a fee free option across their mortgage range to help borrowers keep their upfront costs down.
Halifax which is part of Lloyds Banking Group, seems to be on track to meet a commitment to lend £6.5 billion to 60,000 first time buyers in 2013.
The Halifax has reduced rates on selected two year products across its mortgage and remortgage range by up to 0.45 per cent.
The new rates include a 90 per cent loan to value (LTV) two year fixed rate for first time buyers that is now available at 4.59 per cent with no fee and £500 cash back, and an 85 per cent loan to value (LTV) two year fixed rate remortgage product is reduced by 0.45 per cent and is now available at 3.59 per cent with a £995 fee.
Other changes include 75 to 80 per cent loan to value (LTV) two year fixed rates reduced by between 0.15 per cent and 0.20 per cent with rates now starting at 3.19 per cent and an 80 to 85 per cent loan to value (LTV) two year fixed rate mortgages for home movers and first time buyers are reduced by 0.20 per cent with rates now starting at 3.59 per cent.
Craig McKinlay, mortgages director at the Halifax said ‘We are making a number of pricing reductions across our product range and are pleased to be able to continue to support not only first time buyers, but the wider market.”
Virgin Money has also announced a number of changes to its mortgage range. The updated range two year fixed rates at 60 per cent loan to value (LTV) with a £995 product fee reduced to 2.04 per cent; a 60 per cent loan to value (LTV) Fee Saver Option reduced to 2.45 per cent; and a 80 per cent loan to value (LTV) reduced to 2.85 per cent with a £995 product fee with £300 cash back for purchase customers.
The lenders also has reductions on three year fixed rates, on tracker products and on buy to let mortgages.
Some industry experts have suggested that the economic landscape is shifting and consumers are opting to lock in these record low rates for the long term. They expect to see this trend continuing, with more people opting for longer term fixes.
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