Mortgage competition 'great news' for buyers

Posted: 19 Aug 2008 11:40:09 GMT

Home buyers will benefit from a battle being waged between Britain's two biggest lenders, as they fight to secure new mortgage customers, it has been claimed.

According to the Fair Investment Company, the price war between Halifax and Abbey - as reported by the Times - represents the first time that the two lenders have aggressively gone to war for new borrowers.

David Doulton, director at the independent online finance portal, said that the move is also a promising sign for the wider housing market.

"This is great news from our two biggest lenders for those homeowners who have enough equity or a big enough deposit to be eligible for these deals," he said.

"Times are tough for British households, and mortgage lenders are in a position to ease the current conditions in the mortgage and property market. It is good to see that they are taking their responsibility seriously and helping to bring rates down."

First Direct recently joined the growing group of mortgage lenders that have cut their rates this month.

The loan provider launched a fee-free offset base rate tracker mortgage at just 0.99 per cent above the Bank of England's base rate for remortgage customers.


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