Mortgage deals go up and down

An online bank has provided some reassurance to homeowners struggling to find a good mortgage deal with news that they will cut the cost of their fixed-rate offering.

first direct announced today (May, 29th) that they will be reducing the cost of their two-year fixed-rate mortgages tomorrow.

Chris Pilling, first direct's chief executive, said: "We regularly review our fixed-rate mortgage offers to make sure they're competitive. Today, we're reducing the cost of our popular two-year fixed-rates, which is likely to give them a prominent place in the best buy tables."

The new mortgage will revert to first direct's standard variable rate at the end of the fixed term and the maximum loan value on the new deal will be £400,000.

This news comes in the wake of an announcement yesterday (May 28th) that Abbey's mortgage rates have risen by an average of 0.44 per cent.

Woolwich has also increased the price of its ten and two-year fixed-rate deals.

Mortgages News posted on 29/05/2008 15:57:07