THE latest round of mortgage interest reductions means that rates are varying between a low of an annual percentage rate (APR) of 7.3 per cent and 8.28 per cent. These rates mean repayments cost between £7.75 and £8.35 for every £1,000 borrowed. As Table 1 shows, the cheapest variable rate mortgage for existing borrowers is currently available from Irish Permanent at an APR of 7.3 per cent, while the most expensive is from ICS Building Society at 8.28 per cent. These rates apply as of Monday, January 8th.

As the second table shows, first time borrowers are enjoying a range of discounts, which have resulted in an APR as low as 7.2 per cent and repayments as low as £7.15 per month. Such discounts usually apply for the first year of the loan after which the borrower reverts to the standard variable rate or can opt for a fixed rate product. Fixed rates are still being reduced and Family Money will provide a table when all the lenders have completed their revisions when all the lenders have completed their revisions.