BRITAIN'S biggest building society, the Halifax, is cutting the basic
rate of home loans by 0.66% to 9.99%, it announced yesterday.
The new rate comes into effect immediately for new borrowers and on
November 1 for existing borrowers.
The Woolwich, the country's third biggest society, said earlier today
it was cutting the cost of basic home loans by 0.76% to 9.99%.
Halifax chief executive Jim Birrell said the cut maintained the
competitive position of the group.
A home-buyer with a #60,000 endowment mortgage will save #28.87 a
month with the Halifax.
On a #30,000 mortgage the saving is #12.37 and on a #90,000 loan it is
#45.37, said the society.
Borrowers on the yearly budget plan can request smaller payments
immediately rather than waiting for the annual review.
Meanwhile, the Derbyshire Building Society yesterday cut its mortgage
rate for new borrowers by 0.75% to 9.95%.
Most of the big lenders have now dropped mortgage rates in line with
the 1% cut in basic interest rates last week.
National Savings has reduced most of its savings rates by 0.75%.
The new 39th issue of savings certificates will pay 6.75% over five
years, while the First Option bond, one of the most controversial of the
NS products, has been cut by 0.75% to 6.5%.
The Yearly Plan gives an overall return on five-year agreements of
6.75% tax-free.
Capital Bonds Series F will give a gross return equal to 9% when held
for five years. Net return to a basic rate taxpayer at current rates
will be 6.75%.
Children's Bonus bonds issue D will yield 9.1% tax-free over the first
five years.
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