MORTGAGE RATES SLASHED

Good news for first time buyers with large enough deposits as lenders is slashing rates on fixed rate and tracker mortgages. Woolwich, part of Barclays, has cut the rate on tracker and fixed rate mortgages by up to 0.32% whilst Skipton has lowered its rate by up to 0.5% on its two, three and five year fixed rate products. Recently Halifax and Northern Rock cut their rates on but-to-let mortgages by up to 0.4%.

Skipton's rate cuts could benefit first time buyers as they include fixed rate mortgages at 90% loan to value. They are offering a two year fix at 5.09%, which was previously 5.49%; a three year fix at 5.79%, which was 6.09% and a five year fix at 5.99%, which was 6.29%.