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One per cent mortgage launched

Date: Mon, 08 July 04 Analysis

A new one per cent mortgage released by Standard Life Bank hints at future interest rate cuts.

The incredibly low rate is available for the first three months of a new discounted mortgage for loan to value rates of 50 per cent.

"As rising consumer debt remains a concern it is vital that homeowners take stock of their finances now ... customers can take advantage of these great discounts to consolidate their current financial commitments," said David Macmillan, director of sales and marketing at Standard Life Bank.

Some analysts are seeing the move by Standard Life as a signal by the bank that they believe interest rates have peaked, although a widespread return to interest rates lower than two per cent is also viewed as unlikely.

Standard Life Bank are offering other discounted mortgages in this range.

For people wanting a higher loan to value rate a 2.1 per cent mortgage can be taken out for 70 per cent LTV.

Additionally Standard life is offering mortgages discounted for six and nine months at a LTV of 70 per cent. The six-month discount charges interest at 4.1 per cent, with the nine-month discount offering 4.75 per cent.

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