High street banks reduce rates

Santander (formerly Abbey) and Barclays Woolwich have reduced the interest rates charged on some of their mortgage products.

As of tomorrow (Friday), Santander will cut the cost of a range of its fixed rate homeloans, available through Abbey for Intermediaries, by up to 0.24%. Its two-year fixed rates will start at 3.14%, while three-, four- and five- year fixed rates will be priced from 4.45%.
 
A Santander spokesperson said:

"Our latest rate reductions mean that intermediaries can now offer their clients an even more competitive range of two, three, four and five-year fixes, ideal for borrowers looking for the peace of mind provided by a fixed term product.

"These latest changes to the Abbey for Intermediaries product range provide brokers and their clients with even better deals to help meet their needs."

Meanwhile Woolwich, Mortgages from Barclays, has announced that from 1 September it will lower the borrowing rates it charges on selected tracker, fixed rate and offset deals to customers who also hold a Barclays current account by up to 0.54%.

Customers with any of Barclays' current accounts, including Premier, Additions and Graduate accounts, will be eligible for the discounted rates.

They must have a minimum of £800 credited to their account in each of the last three month when they apply for the deal.

Mortgages include a two-year fixed rate at 2.95% up to 70% LTV, 0.54% below the standard offer.
Products up to 80% LTV, rates are 4.19%, which includes a discount of 0.19%.

Andy Gray, head of mortgages for Barclays, said:

"We are always looking at how we can offer the most competitive mortgage rates we can and the most deserving people for these are our existing customers. Our current account customers will now always have access to discounted rates in our range, as a reward from us to them for their loyalty."