Nationwide, one of the UK’s largest lenders, recently announced that they are planning on reducing interest rates, much to the delight of consumers who are seeking a fixed mortgage. As many banks continue to keep their rates high in the hopes of offsetting their housing market losses, the more affordable fixed mortgages that Nationwide is offering appears like a ray of sunshine surrounded by clouds.Very few banks have lowered there interest rates, despite the fact that the government has urged them to do so. The fact that Nationwide made the announcement has made experts in the industry very hopeful that other banks will follow that lead. According to Nationwide’s Matthew Carter, the company was recently able to reduce interest rates on their 2-year and 5-year fixed-rate mortgages due to the fact that money market swap rates were lowered.Borrowers and consumers who are nearing the end of their current deals view this as great news, and experts predict that this will encourage the re-financing of mortgages by Nationwide customers in an effort to avoid foreclosure. Currently, Nationwide is offering first-time buyers a £300 discount on reservation fees to coincide with the fact that they already offer a variety of mortgages with up to a 95% loan-to-value.
Related reading: Fixed Mortgage
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