You are here: Home - News -

Lenders start to drop rates

  • 27/09/2002
  • 0
The gap between fixed and discount rate products is set to fall further, despite the bank base rate ...

The gap between fixed and discount rate products is set to fall further, despite the bank base rate (BBR) remaining static. The best of two and five-year fixed rate deals have dropped by 0.85% and 0.7% respectively in the last three months, according to Charcol. The broker predicts more lenders will follow suit in coming weeks.

Ray Boulger, senior technical manager at Charcol, said: ‘The premium borrowers pay for the security of a fixed rate has decreased rapidly over recent weeks. For most of 2002 the differential between the best discounts and the best two-year fixed rate has been 1%. This has reduced to less than 0.4% and five-year fixes, which start at 4.69%, are the lowest today’s borrowers will have ever seen.’

He added: ‘Fixed rate prices always start to move up before BBR. Sometimes it is better to bite the bullet and take a good deal close to the bottom, rather than miss out by waiting too long.’


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
Capital adequacy requirement threat to smaller businesses

The added burden for mortgage brokers of needing to show a level of capital adequacy to back up thei...