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Britannia mortgages fall with base rate
4 December 2008 16:33
Britannia building society is one of the first lenders to cut its mortgage in the wake of the base interest rate.
Following today's (December 4th) announcement by the Bank of England that the monetary policy committee has cut the base rate from three per cent to two per cent, Britannia has followed likewise.
However, the firm has opted not to pass on the full one per cent cut to fixed-rate customers, instead offering a 0.6 per cent reduction for those on 80 per cent loan-to-value packages or less.
Tim Franklin, managing director of member business at Britannia, said that as well as some no advance arrangement costs, the company was letting customers pick their rate now and reserve it for as long as four months.
Because of this, he added, even if their present deal does not conclude until next year, borrowers can still benefit from the mortgage products on offer now.
In other news, Abbey also announced an immediate reduction in its mortgage lending rates, with all of its base rate products falling in line with the one per cent cut.
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