Second tier follows SVR cut with reduced fixed rate

by Mackenzie McCarty02 Jul 2012

Citibank has reduced its three-year fixed rate to 5.85% and its 1 and 2 year fixed rates to 5.79%.

Citibank’s head of mortgages strategy, marketing and product Belen Lopez Denis  said the yield curve has inverted strongly once again, giving the lender reason to cut rates.

Lopez Denis said Citibank’s fixed rate products are now lower than the average standard variable rate – which she said is an unusual phenomenon.

“For those considering purchasing a house, it is a good idea to look at the fixed rate options. With so much market uncertainty, it might be worth considering fixing all or part of the mortgage,” she said.

Citibank last week cut its SVR to 5.89%, which it said was in an effort to be on brokers' shopping lists.

Citibank offers a 60-day free rate lock, with Lopez Denis saying the bank is now passing loans submitted as per its published checklist through to conditional approval within 48 hours.

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