Fixed mortgage rates: the current cost cutting

Fixed mortgage rates: the current cost cutting

Increased market competition has led banks and to reduce the cost of their fixed interest rates. HSBC announced a new rate of 5-year fixed mortgage of 3.34% today (September 1, 2011).

The rate may be good today, but will have to fork £ 999 for the fare, and the mortgage is only for those who can pay a deposit of 40%. Although the fee is less expensive than what is quoting Chelsea Building Society, HSBC rate is only 0.05% more.

One of the largest mortgage lenders in the United Kingdom has also reduced their rates. Nationwide Building Society, has reduced its range of five-year mortgage at 0.1% on
Wednesday, launching its offer of 3.69%, which is available up to 70% LTV with a £ 500 discount rate for first-time buyers.

Recently we've seen cutting rates dramatically, and some suggest that it is the beginning of a price war rate mortgages as lenders reduce their rates to attract business. However, Coventry Building Society has withdrawn four years fixed 2.99% market product, a product of fixed-rate mortgage that was announced three weeks ago.

Despite the withdrawal Coventry Building Society, analysts believe that rates could fall further, especially in the long term of five bids years.