New four-year fixed rate mortgage from 2.99%

Traditionally four-year fixes have not been available as the banks have looked to offer five-year fixes. But they can now access cheaper funding for mortgages over four-years and they are a decent alternative. Borrowers will need a 35% deposit to access the new Coventry rates and the arrangement fees range from £498, to £1999.

Lenders have continued to lower their mortgage rates and Woolwich recently reduced over 40% of their mortgages by up to 0.55%. The Skipton Building Society also lowered their fixed rates by up to 0.30%.

The Nationwide Building Society has been slowly chipping away at the price of their mortgages and they now offer a market leading three-year fix at 2.89%. The arrangement is £999 - unless you are a first-time buyer as you will get £500 off of the arrangement fee. A 30% deposit is required.

Aaron Strutt, a broker at Trinity Financial, says: "It has turned into a battle to offer the lowest mortgages and if the banks can't offer the lowest two or five-year rates, they are now looking at alternatives like four-year fixes. Nationwide offer £500 off arrangement fees on all of their mortgages if you are a first-time buyer.

“Trinity has access to the lowest tracker rates. The Skipton Building Society is offering a two-year tracker rate at 1.99% if you have a 50% deposit and it has a low arrangement fee at £995. For borrowers with a 40% deposit, the rate is 1.98% but the arrangement fee increases to £1995.”

August 15, 2011