MORTGAGE lenders are battling to attract business through fixed-rate loans, with rates falling a number of times over the last few weeks, Bradford & Bingley said.
The big two lenders - Nationwide Building Society and Halifax - have reduced their two-year fixed rates to 4.39 per cent and 4.29 per cent respectively.
The market leader is currently Newcastle Building Society, offering 4.22 per cent. Duncan Pownall, mortgage development manager at Bradford & Bingley, said mortgage lenders are clearly desperate to retain customers, especially those coming off cheap fixed rates.
"Nationwide in particular has been aggressive in its fixed rate pricing this year, maintaining its market share and provoking others into action," Mr Pownall said. But he warned: "While these rates look attractive, some sport hefty arrangement fees, not always ideal for those with smaller loans.
"The Halifax 4.29 per cent product, for example, costs £599, while Nationwide charges up to £484 in fees to remortgage on to its 4.39 per cent fixed-rate loan."
But he said the fixed-rate war was great news for the 800,000 potential remortgagers who have either come off or are about to come off cheap fixed rates.
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