Discount deals set for big return
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Discounted mortgage rates are set for a big comeback, says First Action Finance head of communications Jonathan Cornell.
At the Mortgage Business Expo in London last week, he said discounted rates were “almost an endangered species” a couple of years ago but lenders will launch more in the coming months.
HSBC is offering a two-year discounted rate at 2.99 per cent while Co-operative Bank is offering 3.24 per cent to January 2013.
Cornell said: “Discounted rates are going to be a lot more prevalent and we have seen an increase in lenders launching discounted rates recently. Discounted rates attached to SVRs can give lenders phenomenal opportunity to increase their SVRs as the Bank of England base rate goes up, so I think we will see more and more discounted rates.”
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Readers' comments (1)
mortgagemicroscope | 23 Nov 2009 9:51 pm
I think the pressure on lenders to increase their SVR is, and will be huge. There is a strong chance therefore that SVR's may increase BEFORE the Bank of England Base rate goes up and therefore Trackers increase.
Again low headline rates to attract the unwary and those applying directly without taking advice!
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