Three home lenders shave fraction from loan rates
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HALIFAX, Abbey National, and Cheltenham & Gloucester, three of the UK's largest mortgage lenders, yesterday announced they will shave their home-loan rates for borrowers by 0.1 percentage points.
Their decision means a Halifax borrower with a pounds 60,000 mortgage will save pounds 4.75 on a typical pounds 60,000 loan, which now drops to 6.85 per cent. C&G's rate falls to the same level.
All Abbey National borrowers will see a similar monthly fall, although their tiered interest-rate system means that only loans of pounds 100,000 or more will be charged at 6.85 per cent. Lower-sized loans will pay between 0.05 and 0.1 per cent more. The Halifax and Abbey mortgage cuts will apply from 1 May for existing borrowers; C&G said it had not yet decided on a date.
Yesterday's move follows the decision by the Bank of England last week to cut bank base rates by 0.25 percentage points. At the time, with the exception of Virgin Direct which matched the MPC cut, all lenders said they were "reviewing" their charges.
Ambrose McGinn, Abbey National retail products director, said: "[We] have reduced the mortgage rate by less than the base rate, with savers very much in mind. Rapidly falling rates are good for borrowers but they have a great impact on our savers, who outnumber borrowers seven to one."
Mr McGinn added that borrowers were now paying pounds 95 a month less on a typical pounds 60,000 mortgage than they were six months ago.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments