More lenders ‘likely to decrease mortgage rates’

Other mortgage providers are likely to follow in Nationwide’s footsteps after the organisation announced it would be making cuts to the rates on some of its home loan products, one expert has suggested.

Phil Perry at Ark Financial Planning said that he was “quite surprised” it happened, especially with fixed-rate mortgages, where a rise in prices would be expected in anticipation of the Bank of England base rate going up.

He stated: “To actually go down might suggest that they are either expecting no increase in the future or they know something that we don’t.”

Nationwide is a market leader and this means other lenders will probably begin to reduce prices on their mortgage packages too, Mr Perry added.

Consumers beware though, he commented, as it could be a ploy to pull in new customers, at which point the rates would go back up again after a few weeks.

Yesterday, Nationwide announced it would be slashing interest rates on some of its fixed-rate and tracker products by up to 0.5 per cent.

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