Mortgages Uncovered

There are some signs that the crunch may be loosening its grip slightly on mortgage rates, at least for now.

The UK’s biggest lender the Halifax, announced, last week that it would be cutting interest rates on its’ tracker mortgages and some of its fixed-rates by an average of 0.25%; in some instances, these rates will fall by as much as 0.45%. The bank has also announced that it will be offering a new fee-free mortgage product this week.

Escalating levels of mortgage fees have been criticised by not only financial advisers but also consumer groups within recent months, which in effect, was still introducing rate increases but via the back door. Now, Halifax’s move could prompt other lenders to follow suit.

Halifax has not been the only lender taking action of this kind. Also, Yorkshire building society cut rates last week on its range of fixed term mortgages by up to 0.45%. It has also started to offer free legal and valuation fees. Now, Newcastle building society has also moved to cut its rates.

Mortgage Broker, David Hollingworth from London & Country thinks that the prospects for borrowers are starting to improve because there is a downward trend in rates and not just the fixed rate mortgages but also tracker mortgages and other products. And, not only this the conditions in international money markets has eased, allowing lenders to start in cutting their rates again.