More fixed rate mortgage cuts are announced by UK lenders.
Already this summer several lenders have announced fixed rate mortgage cuts, and it is hoped more lenders will follow suit and set a trend.
When the government announced that around £100 billion would be available to lenders to fund cheap mortgage lending, it was hoped that low mortgage rates would soon follow.
Prior to the news, lenders had started to bring in rate increases justifying the decision by saying wholesale funding costs were increasing due to rising swaps and the Libor.
It was expected that news of cheap funding would halt any further increases and rates would hold steady.
Since the announcement of cheap government funding, swap rates and the Libor have fallen reducing lenders funding costs further.
Lenders are now cutting their fixed mortgage rates in line with their reduced costs.
The Nationwide recently announced a reduction to its fixed rate mortgage range. Rates are to be cut by 0.10% for mortgages up to 70% loan to value across its fixed rate range.
A spokesperson for the lender commented on the price reduction advising that fixed rates are popular with home-owners who want the security of fixed monthly payments. Nationwide are therefore focusing on keeping their rates as competitive as possible. Above 70% loan to value Nationwide's rates remain unchanged.
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