Mortgages ‘costing less’

Mortgage lenders have been trimming their rates for customers, despite the base rate staying the same.

Last week, the Bank of England held the level of interest at 0.5 per cent for the eight month in a row, but Northern Rock and Nationwide announced they were trimming the costs of their deals.

The government-owned Rock said it was lowering its offerings by up to 0.5 per cent, while Nationwide unveiled a 0.2 per cent drop in prices.

Director at broker Savills Private Finance Melanie Bien told This is Money: “Mortgages are looking more competitive. After months of inertia, lenders are keen to pull in new business, which is great for borrowers.”

Although brokers have said some people are not being successful in getting homeowner loans, the Council of Mortgage Lenders noted that 52,700 were agreed in August.

This number was up by 29 per cent on the same month last year.

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