Down down deeper and down

"For far too long, the status quo of the mortgage market has been increasing rates and misery for most borrowers. The crunch has seen liquidity in the market all but dry up, but news from Nationwide that they are cutting both tracker and fixed rates will come as a huge relief for all borrowers. With one of the country's leading lenders taking this welcome step, this should be a sign of things to come," says Drew Wotherspoon of Charcol.co.uk.

"Swap rates, the starting point that lenders use to determine the price of their fixed rates, have fallen dramatically over the last few weeks, coming down 0.7% from their peak a month ago. Even the bad news on inflation has failed to dent their progress downwards, and now lenders are, theoretically at least, able to offer better priced products. I would hope to see other lenders follow suit soon bringing some much needed competition to a market that has been depressingly bereft of vying lenders.

"The good news does not stop at just fixed rates either. Nationwide has also reduced the price on its tracker mortgages with the most significant movement on its lifetime tracker, coming down an impressive 0.36% to bank rate +0.98% for those with a 25% deposit - albeit with the introduction of a modest £599 arrangement fee. With expectations that bank rate is going to fall soon, this does look good value for those who do not need the absolute security of a fixed rate. Yet, with the ability to drop into a fixed rate at any time, this does offer the added security that some people will crave."