Mortgage lenders have finally started to cut their rates - a sign of welcome relief for homeowners. Recently, Nationwide cut some of it’s fixed rate and tracker deals by up to 0.46 per cent, reducing annual payments for an average borrower by a total of £550. This move is an example of further positive sentiment in the UK mortgage market following six months of gloom during which mortgage interest rates have reached their highest levels for a decade.
Experts have said that they hoped the worst of the mortgage drought was over and that June would be the market’s lowest point. Other lenders, such as Abbey, HSBC, Woolwich and even the nationalised Northern Rock, have also cut rates recently.
Kate Butler, Conveyancing Executive within the Frettens Residential Conveyancing Team, says “This will come as a welcome relief to the thousands that have been worrying that they will not be able to afford their mortgage because of sky-high rates. Lenders have seemed desperate not to lend money, and have been frantically withdrawing any rate which looks competitive, but this seems to be changing. Nothing is certain at the moment, but hopefully we should see mortgage rate reductions in the coming weeks and months ahead.”