Mortgage rate cuts from Nationwide

04 July 2008

Lender reduces rates on number of mortgage products

The Nationwide Building Society has today reduced the interest rates on a number of its mortgage products by more than 0.25 per cent.

According to an announcement made today by the lender, the interest rates on its two-year tracker home loans will be cut by 0.27 per cent as of Wednesday 9 July.

The lender also said that they would be lowering the rates on its two-year fixed rate mortgages by 0.07 per cent.

The larger cuts will only be seen by the bank’s ‘safest borrowers’ who have at least a 25 per cent deposit.

Those borrowers who want loans worth up to 90 per cent of their property’s value will only see smaller reductions of 0.07 per cent. In the past, this group of borrowers had been denied rate cuts altogether.

Borrowers who only have a 5 per cent deposit will not see their interest rates reduced.

Meanwhile, the Abbey has announced that it will cut interest rates on its tracker mortgages by as much as 0.20 per cent for those borrowers with a 25 per cent deposit. Additionally, Birmingham Midshires is expected to reduce some of its interest rates by as much as 0.4 per cent sometime next week.

Matthew Carter, director for mortgages at Nationwide, said: “These price changes reinforce our message that despite tougher market conditions, we remain very much open for business.”

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