Nationwide and Leeds Building Society have become the latest lenders to cut mortgage rates.
Reductions of up to 0.35% are being made by Nationwide on selected remortgages in a move aimed at helping those coming to the end of their existing mortgage deals.
The building society’s specialist lending arm TMW has also made cuts of up to 0.50% which will help landlords looking to purchase or remortgage properties.
Meanwhile Leeds Building Society has also announced price cuts of up to 0.74% for landlords.
These discounts come just days after Barclays and Santander made reductions to their pricing including cutting some rates to below 4%.
Emma Jones, managing director at Whenthebanksaysno.co.uk was speaking to the Newspage agency. She said: “As the week goes on the rate cuts keep coming. In the current economic climate, with the country delivering negligible growth, households need whatever support they can get.
“With Nationwide joining other major lenders such as Barclays and Santander this week in reducing rates, the mood music in the mortgage market is improving. There are still numerous economic headwinds but this is another small win for the UK’s borrowers.”
How will these price cuts impact borrowers
The price cuts also come just a week after the Bank of England lowered interest rates from 4.75% to 4.5% and as swap rates, which lenders use to set their pricing, have also improved.
The reductions to fixed rates will affect anyone who is looking for a new mortgage now or in the coming months. For these homeowners the big question will be whether to fix into a deal now or wait in case prices fall further.
Ben Perks, managing director at Orchard Financial Advisers speaking via Newspage, said: “It doesn’t look like a war just yet, more like the fight scene in Anchorman at the moment. But as more lenders are arriving the competition is going to heat up and the rate war will truly commence.
“I expect over the next week we will start to see them all jostling for position. These cuts by Nationwide are a big help to homeowners but also landlords who can often be overlooked.”
Meanwhile, Elliott Culley, director at Switch Mortgage Finance via Newspage, said: “Based on experience it would be prudent for borrowers needing to remortgage in the next six months to look at securing these rates now as rates can go up as quickly as they start coming down.”
Borrowers pondering over the best move should speak to a broker who can provide advice and look for deals based on their specific situation.
