Nationwide is reducing the cost of its mortgage rates for new borrowers for the second time in two weeks.
The UK's biggest building society announced that rates will come down by up to 0.46 per cent on some of its fixed-rate and tracker home loans from today.
The group said it was reducing the cost of its deals following a recent fall in swap rates, upon which fixed-rate mortgages are based.
Interest on two-year fixed rate deals is being cut by 0.4 per cent, to give a new rate of 6.18 per cent for those remortgaging on a loan that is 75 per cent of a property's value and paying a £599 fee .
Interest is also being reduced from 6.88 per cent to 6.58 per cent for those who need a 90 per cent loan-to-value mortgage .
But borrowers with a deposit of less than 10% will now have to pay 0.1% more for two-year and three-year tracker mortgages, after the bank raised the rate to 6.68 per cent.
The move follows similar rate reductions carried out by number of other major lenders during the past two weeks, including Abbey, Cheltenham and Gloucester and Barclays' lending arm the Woolwich .
Drew Wotherspoon, member of mortgage brokers John Charcol, said described the news as "a huge relief to borrowers".
"With one of the country's leading lenders taking this welcome step, this should be a sign of things to come," she said.
Nationwide Slash Interest Rates Again
Nationwide Slash Interest Rates Again
Fri, 18 Jul 2008
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