Nationwide Buck The Trend And Lower Mortgage Rates.

Nationwide made Monday morning a little more pleasant this week by announcing some substantial cuts in their mortgage rates. Mainly targeting borrowers with a 40% deposit , they have reduced rates for both new customers and existing borrowers moving home. The cuts of up to 0.5% appear largely in their fixed rate deals, but some trackers have been reduced by up to 0.25%. The rate reductions are accompanied by the introduction of a non refundable booking fee of £99, payable on mortgage application, although the product reservation fees which are added to the mortgage, have been reduced by the same amount. The announcement was unexpected as most recent changes have seen lenders increasing rates, and is unlikely to reverse the trend. The move is seen as Nationwide looking to capture a larger share of the market, as most lenders are experiencing higher borrowing costs, so will be reluctant to trim their mortgage rates.