Fixed Mortgage Update: Lloyds TSB & C&G slash rates

Lloyds TSB and mortgage division Cheltenham & Gloucester are slashing the interest rate on their fixed rate products following the Bank of England Base Rate cut on Thursday, the new rates will be available to new customers seeking fixed rate mortgage deals.

Both Lloyds TSB and C&G passed on the full 1.5 percent interest rate cut onto their Standard Variable Rate (SVR) allowing existing Tracker and SVR customers to benefit from the rate cut.

The new fixed rates reflect additional falls in swaps since the base rate cut announcement and will be available from November 11.

Although the new mortgage deals have interest rates as low as 4.89 percent you still need a hefty deposit, at least 25 percent of the property value to take advantage of the new mortgage rate deals.

If you have 60 percent Loan-to-Value (that’s 40 percent deposit) as long as you fit the loan criteria you will be able to get a 2-year fixed deal at 4.89 percent with a £1,995 lenders fee, you can also get this same deal if you have only 25 percent deposit but with a condition that the loan is no more than £250,000.

It’s also been announced that C&G will be offering a new fixed rate range with just 90 percent LTV later this week.

Source: Mortgage Introducer