21 Oct

Lender announces mortgage rate cut

Lender announces mortgage rate cut

More lenders have announced a cut in mortgage rates.

Alliance & Leicester has said it will reduce its standard variable rates by 0.25 per cent from November 2nd.

This is in addition to the recent 0.5 per cent reduction to its tracker rates, which came about as an automatic consequence of the Bank of England base rate reduction earlier this month.

Both existing and new customers will gain from the tracker reduction.

Existing tracker customers will be offered the lower rate from November 1st, with new customers already able to access the new figure.

Meanwhile Nationwide, which recently said it had to "regrettably" increase its tracker rates in response to wholesale credit market conditions and the actions of competitors, will now trim its tracker rates with effect from November 1st.

Such falls in the cost of mortgages may help boost the property market and increase lending.

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