Another day another mortgage rate cut
News that four of the UKs largest mortgage lenders have cut their rates again has received a luke warm welcome from those looking to move into the property market. There are concerns that the move will again grab the headlines but offer no real substances with first time buyers now expected to put down deposits which are fast approaching 20% of the purchase price.
First Direct, part of the HSBC group, has reduced a number of rates but it was the two year fixed mortgage rate cut from 5.98% to 4.99% which really caught the eye - although like so many recent moves there were no details released as to the level of deposit expected from those looking for the new rate.
Cheltenham & Gloucester was the next of the majors to reduce rates but a cut of just 0.12% - while useful to many - paled into insignificance against the First Direct move. Disappointingly the group also announced that in order to receive the company's best rates, home buyers would actually need to put down something in the region of 25% as a deposit and they would also incur substantial set-up fees.
There were also small rate cuts by the likes of Abbey and Halifax but yet again the better rates seem to demand much high deposits than has been the norm over the last few years.
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