16 Oct

Lenders announce rate cuts

Lenders announce rate cuts

Two more lenders have announced that they are cutting their mortgage rates following the Bank of England's decision to lower the base rate from five per cent to 4.5 per cent last week.

Nationwide said that in addition to its existing tracker mortgage customers automatically getting the 0.5 per cent cut passed on to their deals, from November 1st its Base Mortgage Rate product will be trimmed by 0.3 per cent from 6.49 per cent to 6.19 per cent.

Divisional director for mortgages at the lender Matthew Carter said: "We continue to offer help for first-time buyers and existing customers by giving them access to competitive low fee products."

Meanwhile, the Co-operative bank said it was passing on the cut in full from November 1st.

The prospects for those with tracker mortgages to see their payments fall further may have been boosted by the expectation that inflation will soon be falling fast, which would give scope to the Bank of England's monetary policy committee (MPC) to cut the base rate again.

Speaking earlier this week, MPC member Andrew Sentance said the consumer prices index rate may even end up undershooting the inflation target.
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