Rates reduced for borrowers with a 20% deposit

by Aaron Strutt

Mar 10 2010

Northern Rock and Abbey have made significant cuts to their mortgage rates aimed at borrowers with a 20% deposit. Abbey reduced their mortgages by up to 0.75% and Northern Rock by 0.5%.

Trinity Financial can now access excellent rates through Northern Rock for borrowers with a 20% deposit. Two-year trackers start at 4.49% and two-year fixes at 4.89%, with both mortgages having a £595 arrangement fee.

Abbey now offer a two-year tracker rate at 3.94% and a two-year fixed at 4.95% to those looking to purchase a property. They will even provide a free property valuation and free legals. Both mortgages are available to those with a 20% deposit and they have £995 arrangement fee.

Trinity Financial Group on Radio 5 Live

Aaron Strutt, a broker at Trinity Financial Group, was a guest on Radio 5 Live on Wednesday when he gave good news on reducing rates.

He told listeners that this has been a good week for mortgages. "There have been a number of lenders that have reduced their mortgage rates and made them considerably cheaper.

"Increased competition between the lenders is one reason for better mortgage rates being made available, but there is also now more confidence from the banks and building societies. This is feeding though into the market.

"Borrowers with a 30% deposit can access the most competitive mortgages. Abbey have some of the lowest rates with their two-year tracker at 2.49% and two-year fixed at 3.44%. Both mortgages have a £995 arrangement fee.