DESPITE the Bank of England announcing it will maintain the base rate at 5%, many mortgage providers cut their rates last week, although they still come with large fees attached.
Yorkshire Building Society has lowered the interest rate on its two-year fixed rate mortgage to 5.29%. With this latest drop, Yorkshire's two-year fixed rate has now fallen by 0.9% since July.
Standard Life Bank has reduced the rates on its thre
e, five and 10-year fixed residential rates to 5.95%, 6.09% and 6.25% respectively. The Bank has also cut the cost of its Freestyle term tracker products.
Accord Mortgages has cut rates across the full Prime range by up to 0.7%. Accord now offers a two-year fixed rate starting at 5.19%, and three and five-year fixed rates from 5.69%. The mortgage provider pays the legal fees and standard valuation fees on the three and five-year products.
Meanwhile, Halifax has introduced a new rate guard feature to all tracker mortgages which enables borrowers to move to a fixed rate within the first year of their mortgage without penalty.
B&B bond offer
BRADFORD & Bingley has launched fixed-rate bonds paying up to 6.7%. Two six-month fixed rate options pay 6.4%. One is available in branches or by telephone, and the other is an eBond managed online.
Both bonds have a minimum deposit requirement of £1,000 and a maximum permitted balance of £2m.
Savers looking for a longer fixed term can opt for the one-year fixed bonds paying 6.7%, again available in branches, by telephone and online.
New Isa launchedTHE Post Office has added a new cash Isa paying 6.25% to its savings range.
The Isa guarantees to track changes in the base rate until January 2010 and its rate will never fall more than 1% below it.
Savers can open the Isa in branches or by post with just £1.
Savings boostALLIANCE & Leicester has increased the interest rate on its eSaver account to 6.56%.
The higher rate is only available to new customers. The account, which pays the same level of interest on all balances from £1 up to £500,000, also includes a bonus of 0.94% until December 7, 2009.
Broker fined THE Financial Services Authority has fined mortgage broker Approved Financial Solutions Ltd £63,000 for failing to ensure it gave customers suitable advice and accurate information about mortgage charges.
Jonathan Phelan, head of retail enforcement at the FSA, said: "AFS's failings were serious because its sales process enabled vulnerable customers to apply for mortgage contracts that they could not necessarily afford."
