These are the rates that City institutions lend money between themselves.
Lenders which have reduced their two year fixed rate mortgages this week include:
Chelsea BS by 0.20 per cent from 5.19% to 4.99%
Universal BS by 0.25 per cent from 5.20% to 4.95%
West Bromwich BS by 0.24 per cent from 5.19% to 4.95%
A quarter per cent rate cut means a potential saving of £31.25 on monthly repayments, based on a £150,000 interest only mortgage over 25 years. The first to see a saving will be those who are currently taking up new fixed rate deals. However, with the latest rate cuts, Moneyfacts has seen the difference between fixed and variable mortgage rates becoming almost non-existent. Newcastle BS’s top two year fixed rate mortgage is pinned at 4.49% and Portman BS’s top two year discounted variable rate mortgage at 4.48%.
Darren Cook, Head of Mortgages at Moneyfacts said: “Currently, market sentiment is leaning towards an anticipated reduction in the Bank of England rate with some economists suggesting a possible reduction as large as 0.50 per cent.”
