18/02/2003

Egg, the World’s leading provider of digital financial services, today announces that it is again cutting the interest charged on its Flexible and Saver Mortgages by 0.15% to a market-leading 4.59% - effective from the 1st March 2003.

Egg Mortgage customers, who for the past three years have paid less interest on their loans than borrowers with any of the UK’s top 30 lenders, will now enjoy the lowest mortgages rates seen in the UK since 1955.

With immediate effect, Egg will also reduce the rates on its savings accounts, with its flagship Internet Savings Account now paying an extremely competitive 3.75% gross p.a./AER. Egg’s Internet Savings Account currently has one of the longest savings rate guarantees in the UK, promising to at least match the Bank of England Base Rate until the end of 2007.

Egg’s new mortgage rates mean that a borrower with a £100K interest-only loan will now pay £382.50 per month – saving £12.50 per month on the previous rate. This means that an Egg borrower will pay £110 per month less than an Abbey National standard variable rate customer.

Andy Deller, Director of Banking and Insurance at Egg commented:

“This is the eighth reduction in the Bank of England’s Base Rate in a row and borrowers are now seeing the lowest rates in decades. With Egg mortgages now offering some of the most competitive rates in the UK and our savings options providing unrivalled long term value, Egg is an obvious choice for UK consumers who wish to save money on their borrowings and make the most of their cash savings.”

Provided by Egg