Lenders continue to lower mortgage rates to lure customers

The fall in mortgage rates continue. The banks of Yorkshire and Clydesdale are offering remortgage customers and home-movers one year buildings and contents insurance worth up to £1,000 for free starting Monday. The offer will last until February 28, 2010.

This as the Coventry Building Society has announced a cut in rates by up to 0.54 percent across its Residential mortgage portfolio and reduced the deposit required for its competitively priced fixed rate, base rate tracker and Flexx for term deals.

At the same time, Yorkshire and Clydesdale said remortgage customers and home-movers can instead opt for at least £500 off on arrangement fees. This would give them greater flexibility to suit their financial situation, the banks said in separate statements.

Gary Lumby, head of retail at Yorkshire Bank said, “This new offer is another example of Yorkshire Bank’s commitment to continue lending. By combining a range of competitive remortgage and home-mover products with up to £1000 of free insurance or £500 towards arrangement fees we’re offering great value and choice.”

Steve Reid, retail director at Clydesdale Bank said that the offers are available on a range of products for new residential mortgage customers transferring to the bank from their existing lender.  

Meanwhile, Coventry said they are reducing their mortgage rates in the hope of attracting new customers in the light of stiff market competition.

Coventry sales and marketing director Colin Franklin said, “We are seeing more competition in the mortgage market but this range will take some beating. We have reduced the rates, reduced the deposit required and with some standard variable rates being increased, I am in no doubt that many people will be better off with the Coventry.”