Lenders launch best buy fixed rates

by Aaron Strutt

May 20 2011

The majority of banks have made very few mortgage rate changes over the last few weeks, but during the last couple of days there has been a rush to lower rates. Northern Rock, Abbey for Intermediaries and the Nationwide Building Society have all reduced the price of their mortgages.

Nationwide reduced their two and five-year fixes by up to 0.3% and Abbey introduced a market leading two-year fixed rate at 2.99% - it is available through Trinity Financial. The arrangement fee is £1250 and borrowers will need a 40% deposit to access it.  Godiva Mortgages continue to offer their 1.99% two-year discounted rate and it is one of the lowest ever new mortgage rates. It is great for borrowers wanting to keep monthly costs low - the arrangement fee is 1.99% of the loan amount and capped at £1999.

Aaron Strutt, a broker at Trinity Financial, says: "We are seeing a shift from some of the bigger lenders as they are starting to lower rates again. Six months ago mortgage rates were on the rise but banks are now offering more broker exclusives and flexible options.

"Banks and building societies generally lower rates when they are not lending enough money and the latest lending figures suggest some banks are not trying hard enough.”

May 20, 2011