Lenders Cut Remortgage Rates

Banks have made significant cuts to their remortgage rates to attract the borrowers. The fall in rates has been mainly due to the increased competition faced by lenders.

For a two year fixed rate mortgage with a twenty five percent deposit, the rate is dropped to 3.72 percent and the cost of a five year mortgage reached to a low rate of 4.85 percent.

The average cost of tracker loan has dropped to a record low of 3.5 percent as per the facts released by the Bank of England.

The banks have also launched many new deals in recent weeks to provide loans to the people who plan to remortgage their property.

Michelle Slade of Moneyfacts said that lenders wanted to do more lending and therefore a bit more competition was seen in the mortgage market. “They are trying to kick-start the remortgage market. Many people are on low SVRs and have no reason to move,” she added.

The cost of home loans still remains high despite the recent decline in rates. According to Melanie Bien of Mortgage Brokers Private Finance, though lenders were keen to offer loans to borrowers with reduced rates, the best deals were only available to peoples with significant equity in their homes.

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