The Nationwide Building Society has cut mortgage rates by as much as 0.84% in a sign that competition is finally returning to the market for housing finance. The average cut across about 30 mortgage products of Britain's biggest building society is 0.23%. This is a welcome sign for those people who took out fixed mortgages 2 years ago when the LIBOR interest rate went above 6% following the near-collapse and Government take over of Northern Rock. At the time, bankers were unable to source funds on the wholesale markets.
The Nationwide's rate for a 4 year fixed mortgage will fall from 5.78% to 4.94%. Both HSBC and Abbey have recently tweaked their mortgage products. Various house price indices have indicated that the housing market is now past its bottom encouraging lenders to re-enter the market for 90 and 95% loan to value mortgages. The best deals remain for those borrowing less than 60% of their property's value.
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