Fixed rates may come down
July 18th, 2008 by 
Guy
Fixed rates should possibly start to come down,as other lenders follow the Nationwides example.
Commenting on Nationwide’s reduction of its fixed rate deals, our spokesperson said: Swap rates, the point that lenders use to determine the price of their fixed rates, have fallen dramatically over the last couple of weeks, coming down nearly 0.7% from their highest peak a month ago. Even the really bad news on inflation has failed to breach their progress downwards, and now lenders are,able to offer better priced products. I would hope to see more and more lenders follow suit by bringing some much needed competition to the mortgage market.
The great news does not stop at just fixed rates. Nationwide has also reduced the price on its tracker and discounted rate mortgages with the most significant movement on its lifetime tracker, coming down 0.35% to bank rate +0.97% for those with a 25% deposit with an arragement fee of £599.
Our spokesman also stated, For as long as we can remember,the mortgage market has been pretty depressing with increasing rates and misery for most borrowers. The crunch has seen liquidity in the market dry up, but news from Nationwide that they are cutting both fixed and tracker rates will come as a huge relief for all borrowers. With one of the countrys biggest lenders taking this much needed step, this should be a sign of things to come.
Posted in Mortgage news | 