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Market sees cuts in UK mortgage rate cuts

12th October 2012 | back to article listings BACK    print this article PRINT

A number of banks and building societies have introduced a fresh round of cuts in mortgage rates In a bid to boost property investment in the UK.

The Nationwide is cutting all its rates, with a 0.4% reduction seen in its two-year fixed rate deal with a 30% deposit, which is now available at 3.09%. ING Direct is also cutting 0.75% off its two and five year fixed rate deals this week.

In a bid to boost borrowing by lowering the cost of it, the Bank of England's new Funding for Lending scheme is credited for sparking the mortgage cuts.

Ten lenders in total, of varying sizes, have announced rate cuts this week. Perhaps most prominent is the HSBC which has cut some fixed rate deals by between 0.2% and 0.5%. Tesco bank has also cut some deals by between 0.2% and 0.4%.

Ray Boulger of mortgage brokers John Charcol spelled out the trigger for the raft of cuts: "Funding for Lending is the key here," he said

"Wholesale borrowing rates have fallen quite quickly since the scheme was announced," he added.

Copyright Press Association 2012

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