Further cut to Nationwide mortgage rates.
A reduction in Nationwide mortgage rates has been announced by the lender who has chosen yet again to buck the general mortgage lending trend. The current trend is for mortgage lenders to tighten criteria and increase their rates.
Rate hikes mean lenders are pushing affordable mortgage deals way out of the grasp of first time property buyers.
Nationwide have announced that it is both cutting the cost of its 2 and 5 year fixes by 0.1% and reducing some of it's fees. A 5 year deal is now on offer by the lender for 70% LTV at 3.89% with a £550 fee.
With the announcement of a reduction to Nationwide mortgage rates is it likely other UK lenders will follow suit?
BoE warnings of a worsening eurozone crisis means home-owners are unlikely to be hearing much news of further rate cuts any time soon. Few lenders are likely to follow Nationwide's example, most likely the opposite will happen as banks and building societies attempt to protect their profit margins.
Eurozone problems could impact mortgage pricing for some time to come, and as many UK banks are significantly exposed any losses incurred would mean there will be less money for them to lend.
Nationwide mortgage rates being cut is good news for borrowers, but the lender is unlikely to set a trend as it is in the strong position of being less dependent on wholesale money markets than its competitors.
For the most competitive mortgage rates currently on offer contact Deal Direct today.
