Banks Deliver Borrowers Home Loan Boost

Fri, 25 Jun 2010

Britannia Bank and the Co-operative have delivered some good news to prospective homeowners by lowering interest rates on their 90 per cent loan to value mortgages . Having learned the painful lessons of careless lending with the onset of the credit crunch, banks and lenders have since been reticent to approve high value mortgages as they seek to avoid exposure to any potentially risky loans, and display an awareness of the possibility of borrowers sliding into negative equity .

The two banks are, however, now offering 90 per cent loan to value mortgages with a reasonable interest rate. A two year fixed rate deal on these terms is available with a rate of 4.99 per cent, while a five year fixed rate deal is available at 5.89 per cent. The fees charged on these two products have also been reduced, with a £499 fee now payable for either mortgage .

After the Council of Mortgage Lenders revealed an increase in the numbers of loan approvals during May, this latest announcement suggests an increased confidence in the UK economy – a confidence which should help to kickstart the British housing market.
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