Fixed rates available from 2.89%

by Aaron Strutt

Jan 17 2011

A host of lenders have changed their mortgages this week and there have been a number of rate hikes. The Co-operative Bank, Halifax, Northern Rock and the Skipton Building Society are just some of the lenders to make changes.

Northern Rock have increased rates by up to 0.2%. Halifax offer cheaper rates to borrowers that a capital repayment mortgage, rather than an interest only, but both mortgages have been raised by up to 0.2%. The Skipton Building Society have withdrawn their market leading interest only deal at 3.98% - as well as all five year fixes. They now offer only two year fixes and a selection of trackers.

Aaron Strutt, a broker at Trinity Financial, said: "The cost of fixed rates has risen slightly over the last few weeks and lenders are making changes on the back of these rises. Some banks are also removing rates to manage business and service levels.

"There are still some excellent fixed and tracker rates available. Skipton offers a two year fix at 2.89% (4.8% APR) for borrowers with a 40% deposit or a two year fix at 3.08%  (4.9% APR) for those with a 30% deposit. The arrangement fee is £995 and the lender will pay for the property valuation and legal fees if you are remortgaging to them. For borrowers worried about interest rates rising, Abbey for Intermediaries have a four year fixed rate at 3.99% (4.5% APR) and the maximum loan size is £1million. A 30% deposit is required and there is an arrangement fee of £1495. We also have access to five year fixes starting at 3.99%."

January 21, 2011