London(Shakespearefinance) July 21, 2009:Nationwide, the biggest building society of Britain, gave a rare ray of light when it announced a cut in its mortgage rates.

Nationwide has reduced its fixed as well as tracker rates by around 0.46%. This reduction is however applicable to all its customers with at least a 25% deposit. Interest rates have also eased out for all those customers who have smaller deposits, these rates however are presently in the range of 6.5-plus and are applicable for those who are borrowing above 75 percent loan-to-value on the fixed rates.

This move by Nationwide has offered a respite for the tough mortgage market and customers with a drop in two-years fixed interest rates from 6.58% to 6.18% with a £599 fee. The move was soon followed by names such as Abbey, Cheltenham & Gloucester and Woolwich, who also reduced their rates in the last two weeks but had made sure that these low interest rates deals are meant for only those who have big deposits.

Matthew Carter, of Nationwide, said that his company has been able to reduce the mortgage rates for the second time in a row and with this, has been able to give some valuable and much-needed relief and competitive market rates to its esteemed customers. Drew Wotherspoon, of mortgage brokers John Charcol, said that the cut in interest rates by Nationwide will come as a huge relief for all the borrowers.