Mortgages: 3.99% from Woolwich

With many mortgage lenders still to announce their new standard variable rates (SVRs) following last week’s surprise cut in bank base rate to 3%, probably the best policy for anyone thinking of a remortgage or a house purchase loan is to wait and see what transpires.

At the moment, some of the SVRs are ‘best buys’. Nationwide, for example, has an SVR of just 4.69% while HBOS and LloydsTSB/C&G are at 5%, RBS at 5.19% and even Northern Rock is down to 5.84%.

However, some of the big lenders won’t accept applications for SVRs from new customers or are imposing restrictions and penalties, so they may not be offering as good deals as they appear to be.

Lower SVRs are a big improvement though for existing homebuyers – particularly those who are suffering from a lack of equity due to falling house prices and may not be able to remortgage elsewhere for a better rate.

Many will be coming off two and three year fixes at around 4.5%, so the jump to just over 5% won’t be so painful.

But if you must make a move now, probably the best option is the new fix and track from Woolwich, available from Friday 14 November. It is fixed at 3.99% for the first year and switches to a tracker at 1.99% above bank base rate to give a pay rate of 4.99%. – one of few deals available at under 5%. Full details at www.woolwich.co.uk.

Personal loans: 7.8% from Platinum Exclusive