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.
In the future customers taking out an Alliance and Leicester mortgage will find a range of interest rates on offer depending on the amount of money they are putting down as a deposit.
Last week the Alliance and Leicester introduced their new stance on mortgages, with a maximum of 90 percent loan to value available. However they also introduced a lower rate when the customer can put down a 25 percent deposit, basically making it a more attractive proposition for the borrower and at the same time reducing their own risk exposure.
It has been argued that the 100 percent mortgages did a lot to create the housing market price increases, since people could simply borrow whatever was needed, without having to put down any of their own money. Those days are gone it seems, so the Alliance and Leicester stance may well be repeated by other lenders over the coming weeks.
One of the biggest mortgage providers in the UK, the Halifax, has announced more interest rate reductions on several of its home loan products.
The average mortgage rate reduction made by the Halifax is 0.25 percent, with most of its main tracker and fixed rate products enjoying this cut. Potential customers should be aware that they need to put down a deposit of at least 25 percent in order to receive this lower rate.
A Halifax spokesman explained that they were passing on recent reductions in the cost of borrowing that the banks charge each other, feeling it is in the interest of the market to offer the very best possible rate whenever possible.
