ING cuts its 5 year fixed rate mortgages.
ING Direct has just announced that its 2 and 5 year fixed rate mortgage deals have been reduced by up to almost 1 per cent. The lender has said rates have been set up to 0.75 per cent lower across its mortgage range.
In addition to ING rate cuts, other lenders have also reduced their rates.
The Nationwide has cut its fixed rates, advising that with immediate effect its 2 year fixed rate for 70 per cent loan to value has been cut by 0.4 per cent. The new 2 year fixed rate mortgage is now on offer at 3.09 per cent.
Many home-owners could benefit this year from rate cuts now lenders are experiencing reduced funding costs. In August the Government released £80 billion in cheaper funding to banks and building societies for cheaper mortgages and small business loans.
While it is still early days, the Government funding for lending scheme could lead to more mortgage rate reductions as lenders funding costs have fallen since its launch.
Critics of the scheme disagree saying that so far it has has brought little to benefit mortgage-holders. The majority of rate reductions have been in the lower risk lower loan to value mortgage range, and first time buyers who need the scheme most are receiving little help.
Not all lenders have forgotten the needs of smaller deposit buyers. The Yorkshire Building Society are one lender who has cut its rates for smaller deposit buyers. A 2 year fixed rate mortgage is available at 4.24 per cent for those with a lower 10 per cent deposit, and a 5 year fix is on offer at 4.79 per cent.
Whatever your mortgage needs call Deal Direct for a quote.
