Lenders lower short term fixed rates

by Aaron Strutt

Mar 28 2011

Northern Rock is the latest lender to lower the short term fixed rate mortgages that they offer and their two year fixes are now available from 3.39% - for borrowers with a 30% deposit. Over the last week lenders have made rate changes. The Clydesdale Bank reduced their two year fixes by 0.1%, but increased their five year rates by 0.2%.

Tracker rate mortgages are popular at the moment and it is not hard to see why. Skipton currently offer a two year tracker rate at 2.28% and it is available to borrowers with a 40% deposit. It has a £1190 arrangement fee. For borrowers with a 30% deposit the Nationwide Building Society have a two year tracker at 2.49% and the arrangement fee is £999.

Aaron Strutt, a broker at Trinity Financial, says: "For borrowers not wanting to play a waiting game and take a fix, there are a number of options. Three year fixes are competitive at the moment and they are available well below 4%. The Nationwide offers a market leading five year fix at 4.49% and it has a £999 arrangement fee. These mortgages are all available through Trinity Financial."

March 28, 2011