Nationwide 'may be trying to encourage buyers with attractive rates'

Nationwide's may be trying to capture certain parts of the market by offering excellent rates, one expert has speculated.

The building society recently announced that it will reduce the rate of some of its fixed and tracker mortgage products by up to 0.5 per cent.

Phil Perry, director at financial advisory firm Ark Financial Planning, expects other lenders to follow suit because there must be "a reason" for Nationwide to reduce its prices.

"Hopefully it will be a positive move [so] keep your fingers crossed," he said.

"They are inclined to be saying that 'we might as well try to capture a part of the market with very attractive rates'."

In related news, the Bank of England reported last week that the number of new mortgage approvals increased in June for the fifth consecutive month.

47,584 mortgages were approved in June, compared to 44,169 in May and 43,728 in April.