Ian Giles, Marketing Director of Purely Mortgages, said: "This week has been fairly quiet with little product activity amongst the large high-street Lenders. However, some of the smaller lenders have been making minor changes to their product offerings. Swap rates are down slightly between 0.01% and 0.02%. With the 2 year swap rate at 5.07% it shows what good deals the Stroud and Swindon (4.85%) and Alliance and Leicester (4.86%) are offering.
"Despite some recent disappointing retail spending figures, the economy is growing faster than the Bank of England had predicted in its February inflation report and this has increased the likelihood of a Base Rate rise in the near future, though probably not before the General Election. This news means that borrowers wanting fixed rates should secure the product they want sooner rather than later as a rise in Base Rate will in turn cause Fixed Rates to increase again.
Current ‘Best Buys’
Lender
Rate
Term
Initial Rate
APR
Reverts To
Incentives
Early Repayment Charges
Fixed/Capped
Portman Building Society
2.35% Fixed
Until 31/5/07
2.35%
6.2%
6.74%
Beyond term
Stroud & Swindon Building Society
4.85% Fixed
Until 30/6/07
4.85%
5.8%
5.74%
Free valuation for remortgages
Within term
Alliance & Leicester
4.86% Fixed
Until 30/6/07
4.86%
5.6%
5.5%
Within term
Alliance & Leicester
4.99% Fixed
Until 30/6/10
4.99%
5.5%
5.5%
Within term
Intelligent Finance
5.15% Fixed
Until 31/5/07
5.15%
6.00%
5.95%
Free legal fees and refund of valuation for remortgages
Within term
Discount/Tracker
Alliance & Leicester
2.95% discount from SVR for 2 years then 1.25% over base for 1 year
3 Years
3.89%
6.6%
6.84%
Within term
Stroud and Swindon Building Society
0.10% under Bank Base Rate
Until 30/6/07
4.65%
5.8%
5.74%
Free valuation for remortgages
Within term
Portman Building Society
2.26% discount from SVR
Until 31/5/07
4.48%
6.6%
6.74%
Within term
Portman Building Society
0.06% under Bank Base
Rate
Until 31/5/07
4.69%
5.6%
5.50%
Within term
Lambeth Building Society
2.35% discount from SVR
31/5/08
4.59%
6.6%
6.94%
Within term
