Mortgages got cheaper this week as Post Office and Nationwide cut their rates

Mortgages got cheaper this week as Post Office and Nationwide cut their rates

10 April 2010 / by Rachael Stiles

A host of mortgage lenders have cut their rates this week, including the Post Office and Nationwide.

Post Office mortgages have been cut for the fourth time this year, with its two year fixed rate mortgage falling to 3.15 per cent at 75 per cent loan to value; its three year fix is now 4.09 per cent for 60 per cent LTV; or, for long-term security, its five year fixed rate is now 4.84 per cent, available up to 80 per cent LTV.

Marco Hughes, director of personal lending at the Post Office, said of the rate cuts: "When combined with our low revert rate these reductions further prove our commitment to providing genuine value, not just for the initial period, but throughout the life of the mortgage."

Nationwide mortgages have announced rate cuts this week, slashing the cost of borrowing by up to 0.59 per cent for remortgage customers looking for a two year fixed rate mortgage, with an LTV of up to 70 per cent and no fee, or a tracker mortgage offering a lower rate of 2.99 per cent up o 70 per cent LTV.

New Nationwide mortgage customers can borrow up to 85 per cent LTV on a two year fixed rate of 3.49 per cent, while existing borrowers who are moving home can borrow up to 95 per cent of the property's value.

A five year fixed rate is available at 4.99 per cent, up to 70 per cent loan to value, and first time buyer mortgage customers can save £500 on the product fee.

Martyn Dyson, head of Nationwide mortgages, commented: "We've improved our range by making a raft of cuts of up to 0.59%. We are improving our great rates for borrowers buying a house, but the largest cuts are on our remortgage deals."

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