Mortgage lenders still cutting rates

Several mortgage lenders have cut the price of their fixed-rate mortgage deals, despite some brokers calling the ‘bottom’ of the market.

In the last two weeks, both Halifax and Cheltenham & Gloucester raised the interest rates on their fixed-rate mortgage deals – causing some to speculate that other lenders would follow suit.

However, Abbey, Alliance & Leicester and Northern Rock have all announced cuts to their fixed-rate deals.

As The Times reports, Ray Boulger from mortgage broker John Charcol said: “Halifax and C&G blamed rising costs of wholesale mortgage funding for rate rises, but this is not the whole picture. The key factor is the banks’ appetite for lending. Certain lenders want to slow the pace of new lending by reducing competitiveness, while others continue to offer attractive rates to win business. I expect further cuts from other lenders over the next few weeks.”

Melanie Bien of Savills Private Finance: “Wholesale mortgage costs are not likely to fall much lower and lenders who want to offer rock-bottom rates will have done so by now.”

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Tags: mortgage, fixed rate mortgage, fixed mortgage, fixed rate, mortgage rates, mortgage deals, fixed rate mortgage deals

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