Saturday, Jul 26, 2008
Rates are "improving" by just 0.15% points and only with large deposits
FT: Mortgage rate cuts signal improving market conditions
Northern Rock, HBOS and Royal Bank of Scotland yesterday became the latest lenders to cut mortgage rates, in a further sign that the market is improving for borrowers. Northern Rock, which is actively trying to shrink its mortgage book, is now offering some of the best two-year deals on the market. The bank reduced its cheapest two-year fixed rates by 15 basis points, to 6.24 per cent for house purchases and 6.34 per cent for remortgages. These rates are available to borrowers with deposits of 25 per cent, whereas previously the best rates were only offered to those with 30 per cent in cash. However, most companies are only cutting the rates on low loan-to-value deals, and still require deposits of at least 10 per cent.
Posted by drewster @ 10:58 AM (351 views) Add Comment
1 Comment
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1. paul said...
Improving for borrowers? And the decline in market value of the asset has no effect on the risk?
Do your homework, FT.