Good news for those looking to buy property comes in the shape of some Nationwide Building Society mortgage rates being reduced.
Home loan borrowers will enjoy reduced rates on both tracker mortgages and those on the variable base rate, helping get a foot on the housing ladder. A Nationwide Building Society spokesman explained that this is a passing on of the full base rate cut provided by the Bank of England. As a society they always aim to do the best for their members.
The reduced rates are not being carried through to Nationwide Building Society fixed rate mortgages though, since they are operating in slightly different conditions. For these types of mortgage the rate is actually going up, though the benefit of having the rate fixed for a period of time is certainly worth paying a little extra for.
The recent suggestion about the Alliance and Leicester being taken over by a larger European financial institution has been seen as both a good and bad thing by some experts.
On the one hand the Alliance and Leicester having strong financial support from a much bigger player would instil confidence in customers and probably drive more people to use them. That is a short term scenario though, with the potential longer term one being a market that has less choice.
When organisations join together there is a natural culling of duplicate products and a streamlining of the range – this would be no different with the Alliance and Leicester it has been suggested. Less choice means limited options for mortgage buyers and the likelihood that costs will ultimately be higher.
Alliance and Leicester has announced a new tracker mortgage with a headline rate of less than 6 percent.
The new Alliance and Leicester mortgage is a two year base rate tracker with a 5.98 percent headline rate and a maximum loan to value of 75 percent. There is an arrangement fee of just under GBP1,000 and borrowers can take up to a maximum of GBP1 million.
The typical two year fixed rate mortgage rate has just gone over 7 percent so this sub 6 percent figure is certain to attract keen interest. It offers a real alternative for customers and shows them that the Alliance and Leicester are really doing what they can for customers.
