New 3.99% fixed rate offer

handful

I just came across this announcement http://news.hotproperty.co.uk/Lender_launches_new_mortgage_rates_18926679.html

I know it's only for 60% LTV but still shows the rates are becoming more competitive.

beecher

It does look good but I'm not tempted by a 2 year fix at the moment as I don't think there would be much saving compared to staying on Halifax's SVR. I'd love to see a similar 5 year fix - their lowest is still 5.49% with Alliance and Leicester from what I see.

mramra

It's good news that A&L have finally started shifting their fixed rates down, though I agree it would be good to see a lower 5yr fix. I'm due to remortgage in April so maybe 5yrs will have dropped a bit by then?

It seems that lenders are wary of offering long term fixes, I guess in case interest rates increase in a couple of years. They seem to be pushing borrowers towards 2yr fixes, though the fees can be very high e.g. A&L's 2yr 3.99% has a 1% fee. After 2 years you then have another fee for the next mortgage and so on....

sympatex

40% deposits for FTB are practically unheard of unless they've been gifted money somewhere along the line.

Until house prices come down in my area noone can afford to buy a home as a FTB. these mortgages will begin a stand off, the ones who can stay put will be ok, those that can't will suffer badly. 2 Tiers.

mramra

I do symapthise with FTBs. WHen I took out my first mortgage 10 yrs ago, 10% deposit was all that was needed to access the best deals. 40% is beyond most FTBs.