RAMS prompts 'home loan war' by slashing rates

Wednesday 16 June 2010

Article by Mozo

RAMS Home Loans looks set to spark a pricing war with other mortgage suppliers by cutting rates to their lowest level on the market.

According to the Daily Telegraph, the lender will today (June 16th) cut its two-year and three-year fixed home loan rates by 0.31 per cent – a move that would take the rate to 6.98 per cent.

As the newspaper observed, this is not only "the lowest in the fixed market by far", but is also 0.25 per cent under most standard variable rates

RAMS acting chief executive Tony MacRae said the lender had seen a rise in the number of people looking to compare home loans and secure lower rates.

"With the pressures of increasing interest rates, people are shopping around and seeking a more affordable home loan choice," he said.

Mr MacRae added that fears about further official interest rate rises had led to a 50 per cent jump in the number of customers considering fixed-rate home loans.

RAMS was acquired by Westpac in October 2007.

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