MSE News: Lenders slash mortgage rates 9 June 2011 at 10:57AM in Mortgages & endowments 10 replies 2.3K views

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"A flurry of lenders have slashed interest on their fixed rate mortgages including Halifax, Nationwide and Lloyds TSB ..."

Read the full story:
Lenders slash mortgage rates

nzseries1

If you don't mind me saying so - is 4.5% down to 4.41% really considered a "slash"?

I would consider a drop of 0.09 percentage points to be more of a "nibble" or a "slight laceration", rather than a "slash".

dunstonh

That's what happens in the media. Things don't increase or decrease. They plunge or plummet or soar.

4.5% to 4.41% is an amount that doesnt even deserve a dedicated thread.

Its also interesting to note different opinions. For example in the article it says:
David Hollingworth, of mortgage brokers London & Country, says: "The expectations for interest rate rises have diminished, so the funding costs for lenders have dropped back, and they are passing that on."

Yet Barclays Global Investors have said that interest rises now look more likely in the next month or two.

JimmyTheWig

It's a 2% drop in what you're paying. Worth having on what is most people's biggest monthly expense. Maybe not a slash, though.

But presumably many lenders haven't changed their rates. Which means some have slashed theirs to produce this average drop?

marshallka

YBS has a 5 year fix now for 3.99%. Not bad..... I think?

suisidevw

Agree, the YBS 5 yr 3.99 is a better all round deal than hte article suggests with the £495 fee......

Good for me nonetheless, will make the application for this tonight!

Conrad

Abbey have introduced a 75% tracker at 2.89% with £995 fee. My theory on Abbey is that the Santander group will sheer thier UK cleint Bank in a year or two in order to offset the big losses and toxic balances on the Spannish side of thier operation. They are going all out to grow market share, but mark my words they will extract a price later on.

suisidevw

So what will this mean in 'real terms' Conrad?

Thanks,

JimmyTheWig

Not sure what you mean by "sheer", Conrad.
Presumably people on fixed rates and trackers (like the one you mention) won't be affected by any changes as the rates are not set by Santander.

tifo

suisidevw wrote: »

So what will this mean in 'real terms' Conrad?

Thanks,

Probably means they will go for repossession much more than they do now, much like sub primers did in the last few years. They haven't been as aggressive as some other banks.

As long as they offer me around £25,000 to leave them, i'll leave!!

Thrugelmir

Conrad wrote: »

Abbey have introduced a 75% tracker at 2.89% with £995 fee.

So not attractive to those wishing to remortgage with smaller capital balances.

Lenders pitch these deals to attract customers with larger balances, i.e. more profitable.