Britannia announces mortgage rates cut

Britannia Building Society has announced it is to cut the rate of its fixed-rate mortgages.

In a move which may benefit homeowners looking to switch their mortgage as part of a debt management plan, the lender is reducing rates on its property loans by up to 0.65 per cent from tomorrow.

And it is also introducing new five and ten-year products, which carry interest ranging from 4.69 per cent to 6.29 per cent.

Managing director of member business at the lender Tim Franklin explained that while interest rates are currently low, there is “no guarantee” they will remain this way in the coming months.

“With this in mind, opting for a long-term fixed-rate now means borrowers will have the reassurance that their monthly payments will be protected … regardless of what happens,” he explained.

The building society is the latest of a number of lenders to introduce new mortgage options.

Alliance & Leicester recently launched a range of packages, including fixed-rate deals with interest starting at 3.49 per cent.

By Tom Musk