21Oct
Lender announces mortgage rate cut
More lenders have announced a cut in mortgage rates.
Alliance & Leicester has said it will reduce its standard
variable rates by 0.25 per cent from November 2nd.
This is in addition to the recent 0.5 per cent reduction to its
tracker rates, which came about as an automatic consequence of the
Bank of England base rate reduction earlier this month.
Both existing and new customers will gain from the tracker
reduction.
Existing tracker customers will be offered the lower rate from
November 1st, with new customers already able to access the new
figure.
Meanwhile Nationwide, which recently said it had to "regrettably"
increase its tracker rates in response to wholesale credit market
conditions and the actions of competitors, will now trim its
tracker rates with effect from November 1st.
Such falls in the cost of mortgages may help boost the property
market and increase lending.
