Nationwide is to cut cost of mortgages for new borrowers for the second time in June.
July 23rd, 2008 by Len
Nationwide says rates will come down again by up to 0.46 per cent on some of its fixed rate and tracker mortgages as of 18 July.
Those unable to provide more than 10 percent deposit will see a smaller fall in rates.
The key to mortgage rates i.e. swap rates, have been very high until recent weeks, when they started to fall slightly.
Nationwide is cutting interest on 2 year fixed rate mortgages, for those paying a £599 fee, from 6.48 percent to 6.18 percent on a loan that is 75 percent of a property’s value. It is coming down from 6.88 percent to 6.58 percent for those who need a 90 percent loan to value mortgage deal.
Drew Wotherspoon, of John Charcol mortgage brokers, said the news would be a great relief to borrowers. He feels that as Nationwide is one of the country’s leading mortgage lenders and for them to take this much welcomed step it may be a sign of what is to come for the future.
Lenders still expect mortgage availability to remain tight though during the coming months, because of the immense effects of the credit crunch.
On 9 July, Nationwide cut its fixed rate and tracker deals for house buyers, 3 weeks after it raised mortgage rates by up to 0.5 percent.
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