Everywhere you look at the moment the news is full of portents of financial doom. The word ‘recession’ has even been used in some instances.

The cost of living is on the increase at a hefty rate of knots due to oil and food price rises and the UK public is being warned to prepare for bleak times ahead at least in the short term.

But despite the continued coverage of ‘hard times ahead’ mortgage rates are actually starting to be reduced by several high street lenders.

Last week Halifax announced to its introducer market a reduction of up to 0.57% on some of their products.

Just today Nationwide has announced they are to reduce rates by 0.4% on the 18th making their 2 year fixed rate the same as their 5 year.

Earlier this year the cost of short term mortgages was higher and the result was an increase in the number of 5yr + fixed rates being taken up by consumers.

According to the Institute of Chartered Surveyors there has even been a slight increase in new buyer enquiries.

Commenting, RICS spokesperson Jeremy Leaf said: “With demand so low, would-be-buyers are negotiating from a position of strength. Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains.”