The Nationwide Building Society has just announced cuts to its range of fixed rate and tracker mortgage products.
Applicable from 9 July the Nationwide Building Society 2 year tracker mortgages will have an interest rate of just 5.78 percent, with a fee of GBP1,499 payable. The 2 year fixed rate mortgages will have their rates confirmed shortly, since they were unavailable at the time of writing.
A spokesman from the Nationwide Building Society declared these cuts as indicating how committed they are to supporting the housing market, and their customers. The Nationwide is open for business he said.
The Nationwide Building Society house price index showed a fall in property prices of 2.5 percent in May, making them almost 4.5 percent lower than this time last year.
Despite the falling numbers, when compared with two years ago house prices are still higher now than they were then. This reflects the dramatic price rises the country has experienced and may make existing property owners feel a little better since they can see that the value of their home is still very strong.
A Nationwide Building Society spokeswoman supported this view, feeling that the price reductions were of limited concern to home owners in the short term. As she pointed out it is only those who bought at the very peak of the prices who may feel a little concerned at the moment, though even then property in the medium to long term has always proved to be a good investment.
Good news for those seeking a mortgage comes from the Abbey National, where fees on their flexible mortgage products will be GBP1,000 lower than they were at just GBP1,499.
The Abbey National flexible mortgage deals allow customers to offset their savings against their mortgage, pay more than is required and also take holidays from paying for periods of time. The benefits of such mortgages are supreme flexibility and the chance to clear a mortgage in a much shorter time than a regular one, saving many thousands of pounds in the process by paying less interest.
Although the flexible mortgage deals offered by the Abbey are very good ones there are question marks over how many people are actually buying property at the moment, so there may be a bigger market for them with existing homeowners who are coming off a fixed rate deal.
