Britannia cuts fixed-rate costs

In what is becoming a torrent of mortgage lenders altering their fixed-rate lending costs, Britannia Building Society had announced it is to lower its rates.

Available from today Britannia will be offering a two-year fixed-rate deal from 5.99 per cent. However, this is for a maximum of 50 per cent loan-to-value (LTV) and borrowers must pay a fee of £499.

Borrowers who seek up to 75 per cent LTV will pay 6.39 per cent in interest, while Britannia is also offering a 90 per cent LTV two-year fixed-rate loan for 6.79 per cent. Both also come accompanied with fees of £499.

A fee free two-year deal is available at 6.34 per cent for 50 per cent LTV, or 6.69 per cent for 75 per cent LTV.

Those willing to pay a fee of £999 can secure a rate of 5.64 per cent, with a maximum LTV of 75 per cent.

"Available to new and existing customers, our new products give borrowers the peace of mind that their monthly payments will remain the same for the next two or five years, regardless of what happens within the wider economy," said Tim Franklin, managing director of member business at Britannia.

"What's more, they offer borrowers a choice as there's a selection of rates and arrangement fees to best suit their needs."

Longer five-year fixed rate deals are also on offer. A 75 per cent LTV fix can be had for 6.14 per cent, with a fee of £499 for example.

The fee free version attracts a rate of 6.49 per cent, while those accepting a fee of £999 will pay 5.79 per cent.

Last week Britain's second largest building society launched a one year fixed-rate product for existing customers only.

With a rate of 5.99 per cent and no arrangement fee, the product is aimed at Britannia borrowers whose current fixed-rate deal is coming to an end but are unwilling to commit to a longer-term product.

The news from Britannia follows announcements from Mansfield, Yorkshire Building Society, Abbey, and Royal Bank of Scotland (RBS), all of which have cut fixed-rate borrowing costs.

Chris O'Toole