UK Mortgage lenders fighting for best rates
It could be good news for mortgage lenders in the UK as lenders try to keep their rates competitive and start a rate war in the aim to attract homeowners. As many as nine out of the twelve main mortgage lenders have reduced their rates on two and three year fixed rate deals according to new research from Moneysupermarket.com.
Many of the mortgage lenders who have the most competitive rates have a fee of 2.5% maximum loan-to-value (LTV) ratio of twenty-five per-cent. The UK’s largest lender the Halifax is one of these lenders.
Both the Halifax and Lloyds TSB have rates below five per-cent, however both come with LTV of twenty-five per-cent.
Head of mortgages at Monetsupermarket.com Louise Cuming said, “We are in the midst of a mortgage crisis, yet three quarters of the nation's biggest lenders have recently slashed rates on deals. For such a significant proportion of mortgage providers to drop their rates underlines an industry wide recognition that rates were too high.”
She went onto say that, "This is good for borrowers who can take heart in some positive news - a rarity during the current credit crisis. I am also pleased see lenders making a real effort to make borrowing more affordable."
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