Colin Bell says: "This week we have seen Alliance & Leicester increase their fixed rates and some of their discounted variable rates and Halifax have increased their tracker rates. Other lenders have also made changes, with rates generally moving upwards. Alliance & Leicester still have market leading rates despite their increases.
"The weekend of Easter is normally a ‘kick start’ for the purchase market and this year’s good weather and the historically high number of properties on the market could combine to tempt many potential purchasers into house hunting at Easter. There are also a number of estate agents advertising a drop in sale prices; this should also add to the momentum. I do not think this is a true fall in prices but just more realistic pricing after a prolonged period of house price inflation.
"The crucial advice for purchasers is to choose a lender that offers a good rate, good service and a firm decision that can be relied on. Without this a purchaser runs the risk of not getting the property they have set their heart on. Some lenders issue what is termed ‘an offer subject to valuation’ and this is by far the firmest lender commitment – far stronger than the ‘mortgage promise’ of yesterday."
Current ‘Best Buys’
Lender
Rate
Term
Initial Rate
APR
Reverts To
Incentives
Early Repayment Charges
Fixed/Capped
Portman Building Society
2.35%
Fixed
Until 30/4/07
2.35%
6.2%
6.74%
Beyond term
Stroud & Swindon Building Society
4.85% Fixed
Until 30/6/07
4.85%
5.8%
5.74%
Free valuation
Within term
Alliance & Leicester
4.86% Fixed
Until 31/5/07
4.86%
5.6%
5.5%
Within term
Alliance & Leicester
4.99% Fixed
Until 31/5/10
4.99%
5.5%
5.5%
Within term
Intelligent Finance
5.15% Fixed
Until 31/5/07
5.15%
6.00%
5.95%
Free legal fees and refund of valuation for remortgages
Within term
Discount/Tracker
Alliance & Leicester
3.00% discount from SVR for 2 years then 1.25% over base for 1 year
3 Years
3.84%
6.6%
6.84%
Within term
Chelsea Building Society
Bank Base Rate
2 Years
4.75%
6.6%
6.74%
Within term
Portman Building Society
2.26% discount from SVR
Until 30/4/07
4.48%
6.6%
6.74%
Within term
Portman Building Society
0.06% under Bank Base Rate
Until 30/4/07
4.69%
5.6%
6.74%
Within term
Nottingham Building Society
1.99% discount from SVR
3 Years
4.65%
6.4%
6.64%
Within term
