Nine of 12 main lenders drop two and three-year rates

Nine of the UK\'s 12 main mortgage lenders have cut two and three-year fixed rates over the past two weeks, says Moneysupermarket.com.

Louise Cuming, head of mortgages at moneysupermarket.com, says the move is recognition that rates were too high and that lenders are continuing to use criteria to “cherry-pick” borrowers.

Cuming says: “We are in the midst of a mortgage crisis, yet three quarters of the nation’s biggest lenders have recently slashed rates on deals.

“This is good for borrowers who can take heart in some positive news – a rarity during the current credit crisis. I am also pleased see lenders making a real effort to make borrowing more affordable.

“Sadly the good news is restricted to customers with a spotless credit rating and a large deposit – most commonly around the 25% mark.

“Lenders, of course, are cherry picking which customers they offer the lowest rates to, meaning the gap between the ‘haves’ and ‘have nots’ in the UK is set to widen further.”