Nationwide cuts interest rates for some borrowers

September 20, 2008

Consumers in the UK have been relieved to see that a number of lenders have reduced the interest rates on their mortgage products slightly after swap rates, which are indicative of mortgage interest rates, fell slightly. Nationwide is one of the lenders that has cut its mortgage interest rate slightly. Many consumers have struggled to get finance to purchase a property recently, as mortgage interest rates have remained high even though the base rate has been cut three times between December of last year and April of this year.

The mortgage interest rates on both tracker and fixed rate mortgages from Nationwide have been cut by up to 0.46%. However, not everyone will benefit from the interest rate cuts, because these lower rates will only be available to those that are able to pay a 25% deposit on their mortgage loan. There have been some interest rate cuts on mortgages for those with smaller deposits as well, but the interest rates on these are still high, with most exceeding 6.5% according to reports.

One mortgage broker recently said: ‘For far too long, the status quo of the mortgage market has been increasing rates and misery for most borrowers. The crunch has seen liquidity in the market all but dry up, but news from Nationwide that they are cutting both tracker and fixed rates will come as a huge relief for all borrowers. With one of the country’s leading lenders taking this welcome step, this should be a sign of things to come.’

An official from Nationwide said: ‘For the second time this month, we are in a position to reduce the rates on mortgages, offering some of the most competitive rates in the market. As part of our commitment to rewarding customer loyalty we now have a Lifetime tracker mortgage offering a good deal for customers who are switching their Nationwide mortgage.’

  • Nationwide mortgage customers could face hikes of £1300 a year
    • Many Nationwide mortgage customers could be facing mortgage repayment hikes equating to over £1300 a year as a result of the recent mortgage interest rate hike applied by the building society. Nationwide ha recently announced
  • Increase in mortgage interest rates despite base rate cut
    • The nation's biggest building society, Nationwide, announced earlier this week that for the second time in the space of a week it was increasing the interest rate on some of its mortgage products. This comes
  • Bank of England under pressure to cut rates
    • The Bank of England has found itself facing pressure to cut interest rates again, following reports that house price growth had fallen to its lowest level in twelve years. According to officials from Nationwide house
  • Lender expects 80% fall in mortgage market
    • According to a recent report from one of the UK's major lenders the mortgage market in the UK could plummet this year, and could end up at just one fifth of the level that it
  • House price growth could grind to halt in 2008
    • According to officials from the Nationwide Building Society 2008 could see house price growth grind to a halt in the UK. The building society states that there is to be a 'significant slowdown' in house

Posted by admin | Filed Under Mortgages 

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