Mortgages rates cut by several big lenders

Date:Wednesday 9th December 2009
Author: Susanna Kavka

Mortgages rates from some of the largest lenders have been cut in the last week, according to

With providers taking as much as 1.3 per cent off their rates, the last seven days has witnessed the largest decline in rates since the Bank of England base rate was reduced at the start of this year.

The reduction of rates by 1.3 per cent was seen on mortgages offered by the Post Office, while Scottish Widows Bank has taken 0.4 per cent off some of its products.

Fixed-rate products available on the market over two years, with a rate of four per cent, have increased from 53 to 94 in the past two months.

Michelle Slade, spokesperson for, said: "Following their peak in October 2009, mortgage margins on the popular two year fixed deals have fallen steadily, now standing at the lowest level since August 2009."

There had been suggestions last week from the financial website that the reduction in mortgage rates, in addition to an increased number of fixed-rate mortgages on the market, was an indication that banks were willing to begin lending to consumers more freely.