Major mortgage lenders cut rates

In the past two weeks nine out of the 12 major mortgage providers have cut their rates on a range of mortgage products according to research by the financial portal moneysupermarket.com.

The UK's largest mortgage lender, the Halifax, has cut up to 0.95% off it's cheapest two year deal to 4.89%.  However, there is a fee of 2.5% and a maximum loan to value of 25%.  Lloyds rates can also be found below 5% but will a similar package to Halifax.  While both the Britannia and Abbey have deals around 5.5%, with Abbey offering a LTV of up to 70%.

While rates are falling consumers must watch out for high arrangement fees especially as these are not always noticed until completion of a deal.

Commenting on the price war between mortgage lenders, Louise Cuming, head of mortgages at Moneysupermarket.com, says:  "We are in the midst of a mortgage crisis, yet three quarters of the nation's biggest lenders have recently slashed rates on deals.

"For such a significant proportion of mortgage providers to drop their rates underlines an industry wide recognition that rates were too high.

"This is good for borrowers who can take heart in some positive news - a rarity during the current credit crisis."