What to do now cost of mortgages is being cut
March 9, 2009 by admin
Filed under Mortgage News
Banks and building societies have begun cutting the cost of their mortgages after last week’s Bank of England half-point interest-rate cut to 0.5%, igniting hopes of a battle over fixed-rate deals.
Abbey kicked off the likely action in the five-year fixed-rate market with a market-leading deal at 3.95%, plus a £595 fee, for borrowers with a 40% deposit.
The loan trumps HSBC’s former best-buy, five-year fix at 3.99% with a £999 fee. As with HSBC, Abbey’s deal applies only to loans of £250,000 or less.