Kiwibank has dropped its one-year mortgage rate to reportedly the lowest-ever offered by a New Zealand bank. The one-year rate is now 3.55 percent, and its two-year rate 3.65 percent, following last week's surprise cut to the official cash rate (OCR). Finance news site interest.co.nz said Kiwibank's new one-year rate was the lowest in history from a New Zealand bank. "The new Kiwibank rates involve an impressive cut of -24 basis points for the one-year rate and -14 bps for the new two-year rate, and this positions them much lower than all their main rivals in the big Aussie banks," said author David Chaston. But he predicts that won't last for long. Rates for four-year terms and longer all remain above 4 percent, but Chaston says they're likely to dip below 3 percent once the spring real estate market gets into swing. The Reserve Bank cut the OCR from 1.5 to 1 percent earlier this month, citing slowing GDP growth and "growing headwinds" in the economy. "Global long-term interest … [Read more...] about Kiwibank’s new fixed mortgage rates the lowest ever
Refinance 15 year fixed mortgage rates
Permanent TSB is latest bank to cut its rates on fixed mortgages
The bank said it would cut its interest rate on five-year fixed mortgages by half a percentage point to 3.2pc. Three-year mortgages will be reduced by 0.45 points to 3.25pc, while two-year mortgages will be reduced by 0.4 points to 3.3pc. All three products previously bore a 3.7pc rate of interest. "We have enjoyed great success in growing our market share in new business over the past few years. Customers are showing strong demand for fixed-rate options as they seek to lock in lower rates for longer. These rate cuts offer value to our existing mortgage customers," said Laura Temple, head of mortgages at PTSB. "We're not finished in this space and continue to keep all our rates - fixed and variable - under review." On Thursday, KBC Bank said it would cut its two-year mortgages by up to 0.3 percentage points and 10-year mortgages by up to 0.55 points, meaning its fixed-term mortgages would charge 2.25pc to 3.2pc rates of interest. Those discounted rates require customers to link … [Read more...] about Permanent TSB is latest bank to cut its rates on fixed mortgages
Mortgage rates: Home loan applications jumped, led by refinances
Yan Zhang USA Today Published 11:58 PM EDT Jun 12, 2019 Americans are scrambling to refinance mortgages as borrowing costs tumble. With mortgage rates falling to the lowest level since September 2017, total mortgage applications surged 26.8% last week, led by an increase in refinancing, the Mortgage Bankers Association (MBA) said Wednesday. Applications to refinance mortgages jumped a whopping 47% from the prior week to the highest level since 2016. Mortgage applications to buy a home also perked up, increasing 10% after several weeks of lackluster showings as house shoppers finally responded to falling rates. The average contract interest rate for 30-year fixed-rate mortgages with loan balances of $484,350 or less dipped to 4.12% from 4.23%. “Mortgage rates for all loan types fell by a sizeable margin for the second straight week, pulled down by trade tensions with China and Mexico, the financial markets reacting to more bearish communication from several … [Read more...] about Mortgage rates: Home loan applications jumped, led by refinances
Why mortgage rates are lower in UK
UK retail banking customers enjoy the benefits of a highly competitive market which has seen aggressive pressures on mortgage pricing, personal loan pricing, and savings rates.To put this into context, the average two-year fixed mortgage rate has fallen to under 2.5% while the average five-year fixed mortgage rate is materially below 3%. This means that spreads over the Bank of England base rate of 75 basis points are at all-time lows.Personal lending facilities are also available at rates of below 3%. Competition for savings has also been intense, with attractive deposit rates available from the likes of Marcus and many specialist banks.The UK Competition and Markets Authority’s investigation into retail banking in 2016 pointed to a high degree of concentration in the market — with the largest banks — Barclays, HSBC, Lloyds, RBS, and Santander UK — as well as Nationwide Building Society responsible for the lion’s share of the retail banking … [Read more...] about Why mortgage rates are lower in UK
AIB to cut its fixed mortgage rates
The largest mortgage lender in the state is set to cut its fixed mortgage rates. AIB plans to reduce its existing fixed rate home loans, while it's also introducing a new 10-year rate of 3.3%. The bank is reducing its three-year rate from 3.2% to 2.85% while its five-year rate is coming down by 0.45% to 2.85%. The move is a shock to the market as experts had predicted an end to mortgage rate reductions. The move comes a day after it was announced they were changing its First Trust name in the north to AIB. “Operating as one brand allows us to enhance our offering to customers across the jurisdictions in which we operate, and unifies us all behind our purpose to back our customers to achieve their dreams and ambitions,” said Colin Hunt, AIB’s recently appointed chief executive. That move is not Brexit related, a spokesman said. … [Read more...] about AIB to cut its fixed mortgage rates