Woolwich cuts buy-to-let mortgage rates |
Woolwich, the mortgage arm of Barclays, is cutting rates on buy-to-let deals by up to half a percentage point.
From Tuesday, it will be introducing a new rate of 6.99 per cent on its five-year fixed-rate deal, down from 7.49 per cent. The interest rate on its portfolio lifetime tracker, aimed at professional landlords, will also fall, from 1.99 per cent above the base rate, currently 5 per cent, to 1.49 per cent rate above the base rate.
Buy-to-let landlords are the latest borrowers to benefit from a series of rate cuts from lenders. Halifax, owned by HBOS, cut rates by up to almost a third on some mortgage deals last Friday while its Bank of Scotland, also part of the HBOS, group, reduced rates by 0.45 percentage points.
Earlier in the week Woolwich cut rates on residential deals by up to 0.35 percentage points while Abbey, Britain's second-biggest lender, reduced its fixed-rate deals by 0.1 percentage points. Lloyds TSB and Nationwide have also announced cheaper deals.
The decision by lenders to reduce rates on home loans follows an easing of conditions in the inter-bank lending market. Swap rates, which determine the cost of fixed-rate mortgages, fell below six per cent last week after peaking at 6.5 per cent in mid June.
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Added on 29/07/2008 00:00:00
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