Monday, Aug 03, 2009
40% deposit anyone?
Sharecast.com: Nationwide cutting mortgage rates
LONDON (SHARECAST) - Nationwide is cutting the cost of some fixed and tracker rate mortgages by as much as 0.5%, although only those with a 40% deposit and £995 fee will get the best deals.
Britain’s third largest mortgage lender will offer a four-year fix at 5.08%, down from 5.58% before, while a two-year tracker drops to 3.08 points above the 0.5% base rate.
The move will raise hopes that other lenders follow suit, but critics point out that first time buyers will still find it tricky to find such large deposits.
Posted by hotfoot @ 06:12 PM (329 views) Add Comment
3 Comments
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1. paul said...
40% deposit in impossible for most. This is the real price of lending.
Forget the politically-motivated Bank of England rate.
2. tyrellcorporation said...
Cynical move to obtain savers deposits and funnel them into a depreciating asset - thus covering their collective ars*s!
3. 51ck-6-51x said...
" ...a two-year tracker drops to 3.08 points above the 0.5% base rate. "
308 bp over base for a tracker that still implies quite a basis risk.
The market may well be pricing in, amongst other things, higher future funding rates and erm... higher default rates.
I wonder why?!