The Mail on Sunday

RATES SLIP But only for some

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MORTGAGE rates continue to trickle down for new borrowers – but mainly for those with big deposits or substantia­l equity in their home.

HSBC last week launched a competitiv­ely priced twoyear fixed-rate mortgage deal at 2.99 per cent.

The downside is that it is available only to borrowers with at least 30 per cent equity in their home. The loan has an arrangemen­t fee of £999.

Leek United Building Society has a three-year fixed-rate deal at 3.9 per cent. There is a £495 fee and it is available to those with a 25 per cent deposit or equity.

Co-operative Bank has a 3.19 per cent fix for two years with a £999 fee. Borrowers must have at least 25 per cent equity.

Over a five-year term, Accord, part of Yorkshire Building Society, offers a 4.44 per cent fix through brokers.

It has a £1,995 fee and is available up to 65 per cent loan to value.

For borrowers who are prepared to live with the risk of interest rates rising, First Direct has a lifetime tracker deal at 1.89 percentage points above the Bank of England base rate, currently 0.5 per cent.

Trackers mirror any rise or fall in the base rate. First Direct’s starting pay rate is 2.39 per cent, there is a £499 fee and borrowers must have at least 35 per cent equity.

ING Direct has a lifetime tracker with a starting pay rate of 2.69 per cent and a £945 fee. The minimum deposit or equity is 25 per cent.

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