Lender cuts fixed-rate deals

First-time buyers struggling to get on the housing ladder and homeowners who are trying to get hold of good mortgage deals will be pleased to learn that at least one lender is cutting its rates.

Cheltenham & Gloucester has reduced rates on some of its fixed deals from 7.05 per cent to 6.00 per cent, raising hopes "that the worst may be over in the crisis-hit mortgage market", the Telegraph has reported.

Melanie Bien, director at mortgage brokers Savills, said: "It is encouraging that a lender is reducing rates, however slightly. This will be encouraging for new borrowers and homeowners looking to remortgage."

Savills has warned, however, that the move by C&G may be an attempt to get more market share, as opposed to an indication that rates are coming down overall.

Many analysts have also pointed out that cooling rates on wholesale money markets - which is what lenders use to raise money for their customers' mortgages - could be a positive sign.

Mortgages News posted on 03/07/2008 16:28:07