Effective from 16 May the Nationwide Building Society will have reduced interest rates on both two year and five year fixed rate mortgages.
The two year fixed rate mortgage will have a new rate of 5.95 percent with just a GBP599 arrangement fee. There is also a fee-free Nationwide Building Society two year foxed rate mortgage that will be available at 6.35 percent. These rates are for people moving house but there is also a remortgage offer, with rates of 6.15 and 6.55 percent respectively for the same mortgage offers as above.
The longer five year fixed rate mortgage can be had at 5.85 percent for house purchasers, again with a GBP599 fee, while the remortgage option is 5.95 percent. Customers coming to the Nationwide Building Society to change mortgage from a different company are also entitled to a special offer on a five year fixed rate mortgage, with no fee, at 5.95 percent.
According to the Abbey National falling house prices may be an interesting opportunity for some homeowners who can see the chance to get a bigger property at a smaller price.
The figures held by Abbey National indicate somewhere in the region of 2 million homeowners are considering a move as house prices drop. Around 1.2 million of these people are hoping to trade up to a larger house, feeling they will get a relative bargain.
As a spokesman for Abbey National Mortgages reaffirmed, a market where house prices are falling is not always bad news. It creates opportunities and bargains that some people can make the most of.
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.
