A big deposit means a lower fixed rate mortgage
January 18, 2009 by Brendan
News
Last week, interest rates were cut by a number of mortgage lenders for buyers who were able to put down a sizable deposit. If you’re able to raise a 60% deposit on a new home, you can take advantage of a 3.19% rate with the Alliance & Leicester, subject to a 2% fee. For a slightly smaller 25% deposit home buyers can find rates at 3.69%.
If you have a 60% deposit and want to pay less than the 2% fee, can you pay a 1% fee and take a rate at 3.69% which is fixed for two years, or you can have a rate of 4.19% if you have a 25% deposit.
Royal Bank of Scotland also reduced their mortgage rates last week, offering a rate of 3.99% on a fixed two year deal when you have a 60% deposit and a £799 fee. RBS is also offering a rate of 4.14% for a 25% deposit and a £999 fee.
HSBC has a similar offering with a 3.99% two year fixed rate available with a deposit of 60% and a £999 product fee.
The best rate HSBC offer is their two year discount mortgage. This mortgage offers a rate 0.95% under their standard variable rate. This means that in February the interest rate on this mortgage offer will be 2.99%. This offer isn’t available to everyone though as only Premier customers of HSBC can take advantage of this offer.
Written by
Brendan
You may also interested in:
Atom Bank planning expansion following relocation
Atom Bank has announced that it is planning to add to its mortgage teams, in the wake of
New telephone BDM recruited by Dudley BS
Dudley Building Society has announced the signing of a new telephone business development manager (BDM), as it seeks to
