Abacus Daily Debt News

Lenders unveil mortgage discounts

Royal Bank of Scotland and NatWest have announced that they lowering rates on a “significant” amount of their tracker and fixed mortgages.

Prices have been cut by up to 0.65 per cent by the two lenders, with a new two-year fixed-rate deal being offered at a “best-ever” rate of 3.49 per cent.

This product is available at a loan-to-value (LTV) of up to 75 per cent, the firms revealed, noting that up until now the best deals were only offered on LTVs of 60 per cent or less.

Customers looking to remortgage will also benefit from reduced prices, they added.

“We remain committed to lending to our customers and offering highly competitive rates during these challenging economic conditions,” commented Andy Fell, director of branch mortgages.

In related news, Leeds Building Society has unveiled a new fixed-rate mortgage product, offered at 4.99 per cent for a five-year period.

Abacus Comment:
While the new availability of cheaper secured lending may be welcome news for some, those thinking of sweeping unsecured debts under the table by whacking it on their mortgage should proceed with extreme caution.
For many debtors, a debt management plan or IVA is a better option. This reduces monthly credit commitments without increasing the risk of  repossession should you not be able to afford repayments.