Thursday 18 August 2011

Lenders cut rates in home loan price war - Mortgages, Money - The Independent

Lenders cut rates in home loan price war - Mortgages, Money - The Independent

A mortgage price war has been building in the past few weeks as lenders slash the cost of borrowing in a frenzied attempt to attract business. Yesterday Northern Rock cut up to 0.9 per cent off its fixed rate mortgages. Today it is the turn of the Coventry building society as it launches a market-leading 3.49 per cent five-year fixed rate.

The spate of mortgage rate cuts in recent weeks has accelerated to a daily event as lenders take turns to top the best buy tables. Fixed rates now start from as low as 2.39 per cent for a two-year deal and rates could fall lower as banks and building societies chase the narrow market of remortgagers or new buyers who can afford to slap down a good-sized deposit.

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