Cheaper mortgages from RBS and Natwest
February 10, 2009
A leading lender along with its parent company has announced recently that it is launching a range of cheaper mortgages.
It is hoped that the launch of cheaper mortgage products and increased mortgage finance availability could help to kick start the flagging housing market, and with the Bank of England having aggressively cut interest rates over recent months this may give some potential buyers the chance to get an affordable mortgage.
The new cheaper mortgage range has been launched by the Natwest and its parent company, which is the Royal Bank of Scotland. Both of these lenders have announced that they are launching a range of mortgages that can be fixed for two, three, or five years, and the interest rate on the mortgages will start at 3.99 percent. The base interest rate currently stands at 1.5 percent, which is the lowest in history, after a series of base rate cuts between October and January.
Officials from the two lenders have said that the mortgage interest rates on its cheaper mortgages have all been cut by at least 0.25 percent, and in some cases they have been cut by as much as 0.7 percent. However, following the most recent base rate cut from the Bank of England the lenders did not reduce the interest rates that their standard variable rate customers were paying, only passing the rate cut on to customers that had tracker mortgages.
With regards to the new cheaper mortgage range that has been launched one official from the lender stated: “We believe this attractive new range of fixed rates gives us a great opportunity to help our customers secure lower rates and potentially save some money on their monthly repayments.”
It is hoped that by saving money on mortgage repayments consumers will be able to spend more money, and that this will help to revive the economy.
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