Singing Pig

(Rates are Resi not BTL)

Swaps edged up slightly last week but I think this was due to the markets adjusting to the fact that they'd probably fallen too far after the Bank of England's pessimistic quarterly inflation report.

Let's hope they continue to fall.

· One-year money is up 0.04% at 5.56%

· Two-year money is up 0.04% at 5.38%

· Three-year money is up 0.04% at 5.35%

· Five-year money is up 0.04% at 5.28%


Writing this column is enjoyable right now as rates seem to be going one way and that's down. There's competition in the residential market as lenders strive for quality low LTV business. I'm sure the competition will eventually spread higher up the LTV chain, which should allow more borrowers to benefit.

It was a case of déjà vu at August's Monetary Policy Committee meet-ing. According to its minutes published last week, members voted in three ways as was the case in July.

Tim Besley backed a rate rise, David Blanchflower opted for a cut and the other members voted to keep the base rate at 5%.

The minutes reflect that most of the MPC wanted to hold the base rate because although inflation is rising, growth prospects have worsened.

With consumer price index inflation at 4.4% in July, more than double the government's 2% target, the MPC has little room for manoeuvre. I doubt we will see a cut in the next couple of months - November is probably the earliest we can hope for but next year looks more likely.

Cheltenham & Gloucester unveiled some excellent deals last week. It has a series of two-year fixed rates at 5.65% with a £1,995 fee, 5.75% with a £995 fee, 5.95% with a £495 fee and 6.25% with no fee. All are available up to 60% LTV with a generous maximum loan amount of £1m. Its three-year range starts at 5.69% and its five-year deals at 5.75%.

C&G also launched something of a rarity - tracker rates without early repayment charges. I have fond memories of when these products were so common every lender offered them. C&G's products start at base rate plus 1.49% for loans up to 60% LTV, plus 1.59% for loans up to 75% LTV and plus 1.99% for 90% LTV deals, all with a £995 fee.

There's a distinct lack of competition in the buy-to-let market right now. A number of lenders are dabbling in it but it feels like only BM Solutions is truly committed to the sector. Rates are so high that it's difficult for landlords to remortgage unless they need low LTV deals.

Northern Rock launched a good three-year flexible fixed rate deal at 5.79% with a maximum LTV of 75% and a £1,195 fee. Its maximum loan size is £1m and is available for purchases and remortgages. For the latter there's free basic valuation and standard legals, plus enhanced proc fees for residential remortgage cases.

Abbey reduced a number of its fixed rate remortgage and flexible offset deals.

Its two-year remortgage fixed rate starts at 5.89% with a £995 fee up to 70% LTV and its three-year deal to the same LTV is now at 5.79% with a £1,295 fee.

It's a shame len-ders aren't so keen on cutting purchase rates. The quicker they fall the better as this will encourage borrowers to buy property, which should stop house prices falling further.

Accord Mortgages has reduced its rates and now has a two-year fixed rate at 5.39% with a 1.5% product fee. Its three and five-year fixed rates start at 5.99% and its 10-year fixed rate is now at 5.89%. Bristol & West Mortgages has improved its rates too. Its three-year fixed rate is at 5.79% and its three-year remortgage fix is at 5.89%. Both feature a 1% fee and are available up to 75% LTV.