Astra reduces fixed rate mortgages

The Basel II wing of Norwich & Peterborough Building Society has reduced rates on many of its fixed rate loans covering two, three and five-year fixed deals.

Options without incentives include two-year fixed rates at 75 per cent loan-to-value (LTV) reduced from 5.34 per cent to 5.14 per cent, on the 85 per cent LTV and 90 per cent LTV reduced from 5.48 per cent to 5.27 per cent and from 6.04 per cent to 5.84 per cent.

On its three-year fixed rate, the 75 per cent LTV product has been reduced from 5.84 per cent to 5.54 per cent and from 6.24 per cent to 5.93 per cent. Rates have also been reduced on four loans in the three-year 85 per cent LTV range, and in the five-year 85 per cent and 95 per cent LTV ranges.

Options with incentives are reduced on the five-year fixed rates. At 75 per cent LTV, rates have been reduced from 6.48 per cent to 6.09 per cent and from 6.54 per cent to 6.19 per cent.

Graham Toy, chief executive of Astra, said: “These new products will be very exciting for mortgage introducers and their clients.”

Jock Cassidy, managing director of Ashley Law, said: “These aren’t particularly exciting rates, either before or after. Perhaps it is banking on Bank Base Rates levelling off and a possible drop by the end of the year.”