Mortgage rates likely to be reduced by major lenders
05 August 2009
Nationwide Building Society has reduced the rates on some of its fixed and tracker mortgages prompting commentators to predict other lenders may follow suit.
Phil Perry, director at Ark Financial Planning, noted that Nationwide''s decision to reduce rates will influence the market.
He said: "I would tend to say that if one has come down then there would be a reason for it and, with them being a big player, I would think that others will follow.
Mr Perry also asserted that the reason for the Nationwide move may simply be to attract customers and could be a short-term decision.
"That has happened in the past where they have actually cut rates in order to try and bring business in and what they then do [is] they go along and increase the rates again or increase the fees. It''s very much swings and roundabouts," he added.
The changes to the Nationwide mortgage rates came into effect yesterday (August 4th) and some of the more popular policies have been reduced by up to 0.5 per cent.
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