Nationwide and Cheltenham & Gloucester reduce mortgage rates

British lenders Nationwide and Cheltenham & Gloucester have both announced they are to reduce rates on some of their mortgage products; this will help to ease borrowing just a little.

Nationwide, who it the UK’s second largest lender will cut their two-year fixed-rate loans today by 0.3 per cent, while their three-year and five-year mortgages will drop by 0.12 and 0.17 of a percent age point, respectively.

Lloyds TSB owned Cheltenham & Gloucester cut the rate on their two-year loans yesterday; the new rate has been reduced by between 0.1 and 0.15 of a percent.

With so many mortgage lenders now reducing their rates, we are starting to see borrowers switching mortgage lenders to try and get the best deal in these tough times.

Mortgage costs have raised sharply over the past year, banks were losing money so the only place they could make it up was from mortgages. House prices have now started to fall because of this, it is hoped that we more lenders reducing the rates of their mortgages that this could help kick start the housing market once more.

Source