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Competition in the mortgage industry is heating up as another lender slashes its fixed rate products.
Mortgage manager National Finance Club announced yesterday that it would cut up to 30 basis points off some of its fixed rate products.
Effective this week, the lender will slash 0.21 per cent off its two year fixed rate and 0.3 per cent off its three year fixed rate – taking them to 7.2 per cent and 7.46 per cent respectively.
The company’s managing director Andrew Clouston said the reductions reflected the company’s commitment to offer the best possible rates, combined with high levels of service for brokers.
“For borrowers looking for more certainty in their cashflow, fixing a portion of the loan and leaving the remainder on our standard variable rate of 6.96 per cent can provide some protection against further interest rate rises,” Mr Clouston said.
“In particular, these competitive fixed rates offer greater flexibility for investors to tailor a loan to lock in repayments required and better suit their appetite for interest rate risk.”
Over the last two months, all four majors have trimmed the fat on their fixed rate products, with ANZ the first major to move back in May.