Nationwide rate cuts and CML lending figures – comment and analysis

Sean Gardner of said:

"Nationwide’s fixed rate cuts of up to 0.3 per cent are a welcome sign that the mortgage market is starting to come out of its coma and more lenders are likely to follow."

"Nationwide says it is cutting rates in response to the Bank of England’s £50 billion rescue deal for the mortgage market aimed at encouraging lenders to start lending again which is a sign that at last something is starting to move."

"But – and it’s a massive but – it still remains the case that the biggest struggle for borrowers is not being able to afford a mortgage – it’s being able to get one. Availability remains the problem despite all the Government efforts to get lenders lending."

"The Council of Mortgage Lenders figures today show lending for house buying at their lowest since 1975 and there’s very little hope that things will get better during the rest of the year."

"If you’ve not got a substantial deposit nowadays or equity in your house then your choices are still severely limited. On average if you are remortgaging you now need a deposit of 15.5 per cent if you take out a fixed or variable mortgage."

"First time buyers and people renegotiating their mortgage for the first time will be worst affected. When disposable income is already at breaking point for many, it is frankly impossible to see how those with limited savings will find a way to get a foothold on the property ladder."

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