Good news for mortgage hunters! Last week a number of mortgage lenders cut their rates as the Bank of England kept its bases rate steady at 0.5%.

Northern rock cut up to half a percent off its trackers and 0.3% off its fixed rates.

Then Nationwide cut 0.31% off its fixed rates and 0.2% off its trackers.

Then Alliance & Leicester cut trackers by 0.4%.

To us this looks like the lending market sharpening up its act following criticisms that their rates were far too out of line with the BoE’s base rate. If we are right more is to come!

However, we anticipate that the brake will only be released on people who have substantial deposits and perfect credit records. It’s going to remain tough for the rest.