After months of rising, lenders begin to cut fixed-rate mortgage rates

Published on Friday 4 July 2008 21:47

EXPERTS have forecast a fall in fixed-rate mortgage prices after several leading lenders announced cuts. Abbey, Nationwide and Halifax are all cutting rates on some deals and more reductions could be due, according to Ray Boulger, senior technical manager at broker John Charcol.

"Most lenders haven't cut their fixed rates yet but it does look like we're off the peak and we could see rates come down again," said Boulger. "These reductions are encouraging because they suggest lenders are increasing their appetite for business again."

However, the biggest cuts announced yesterday will only benefit borrowers able to put down at least 25 per cent.

Nationwide is reducing some of its fixed-rate and tracker deals by up to 0.27 per cent from next Wednesday, while Abbey cut some of its 75 per cent LTV fixed-rate and tracker mortgages yesterday by up to 0.2 per cent. It is also adding two new ten-year fixed-rate deals to its range. Halifax is cutting some tracker rates, which were not available as The Scotsman went to press.