Mortgage freeze starting to thaw? Asks London Mortgage Broker, London Mortgage Advice Friday, 20th November 2009

Cheltenham & Gloucester, part of the mammoth Lloyds Banking Group, has cut the cost of a range of mortgage deals and introduced a ‘best buy' product, while Abbey has also launched a market-leading deal as we witness further evidence that the mortgage freeze is starting to thaw, a little.

Available through mortgage intermediaries they have both been reduced by up to 0.5% on the interest rates charged on C&G’s two-year fixed rate mortgage and its tracker deal

Coming with a fee of £995, C&G has also launched a two-year tracker mortgage, which charges 2.29% above the Bank Base Rate. Currently priced at 2.79%, although it is only available for borrowers with a 40% deposit and a good credit record.

Available to people with only a 10% deposit, a welcome move for first-time buyers, C&G also introduced a two-year tracker priced at 5.99% and reduced the cost of a two-year fixed rate to 6.99%.At the same time Abbey launched a two-year fixed rate deal priced at 3.69% available up to 70% loan to value with a fee of 3.69%, the lowest fix on offer for those with 30% deposit.

Northern Rock and Nationwide Building Society are among a number of other mortgage lenders that have reduced the interest rates charged on some of their products this month.

It shows that competition beginning to creep back in to the UK mortgage market.