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Nationwide cuts rates on mortgage products

23.05.12

Martyn Dyson said the communal will reduce its five-year fixed-rate mortgage to 4.49 per cent which is available at between 80 and 85 per cent loan-to-value with a &beating;900 product fee and £99 booking fee.

Nationwide will make a million of other pricing changes to its mortgage products, including selected two and three-year trackers with cuts of up to 0.15 per cent, and selected stable and tracker interest rates increased by between 0.05 per cent and 0.20 per cent.

Mr Dyson said: “Nationwide is committed to ration borrowers with smaller deposits obtain competitive mortgage rates. The 0.15 per cent reduction on selected mortgages at 85 per cent LTV comes unprejudiced days after Nationwide moved to offer its core rates up to 90 per cent LTV.”

Nationwide Structure Society has confirmed it will participate in the new build indemnity scheme to support both the distribution of quality housing and the core aspirations of home ownership within the UK. It will work closely with the oversight to develop the scheme for launch in 2012.

In order to encourage housing market movement, Nationwide has also called for the current annual cash Isa limit of £5340 to be increased to the highest £10,680 in order to encourage customers who are saving for a deposit.

Blair Cann, IFA for Hertfordshire-based M Thurlow & Co, said: “The known average age for a first-time buyer is in their 30s. I am sure many would like to buy earlier but there is a problem with the mass of deposit that needs to be put down.

“So with that in mind, the Nationwide’s move is to be welcomed. Not only will this lend a hand more young first-time buyers, but without such initiative we would be moving towards the European model of renting rather than buying.

Source: FT Adviser

CEBR: House prices to rise by 15% in five years as homes shortage counteracts ...

23.05.12

Tarmac Cowboy - I have the courage of one's convictions pretend that the influence of restricted lending on house prices has been limited because over-indebted people have been allowed to hold fast to one another onto their properties through ultra accommodative, artificial conditons which cannot be sustained indefinitely. Nevertheless, we have seen falling prices (30% in physical terms) since 2007. If interest rates were where they should be, this would have been far greater. Lending is still at levels that are consistent with falling theatre prices. The only way current prices can be sustained is if lending once again approaches the levels it reached pre-2008 AND interest rates continue to be low. If not, the adjustment will continue. What remains to be seen is how quickly this happens. You also mentioned rising rents. It seems that the "at once" from landlords buying up more property to rent out with their higher rental income is still inadequate to support prices. However you chop it up, there is now less money & demand in the property market.

- Plain-spoken Hegarty, Farnborough, 28/11/2011 01:53

Source: This is Money