LONDON, July 17 (Reuters) - Nationwide and Cheltenham & Gloucester have become the latest British lenders to trim their mortgage rates, reflecting a slight easing in wholesale borrowing costs.

Nationwide, the country's second-biggest mortgage lender, said it would cut its popular two-year fixed-rate loans on Friday by 0.3 of a percentage point, with three-year and five-year mortgages dropping by 0.12 and 0.17 of a percent age point, respectively.

C&G, owned by high street bank Lloyds TSB (LLOY.L: Quote, Profile, Research), said it was cutting the rate on its two-year loans from Thursday by between 0.1 and 0.15 of a percentage point.

Market-watchers said the declines were driven by a drop in the cost of interest rate swaps, which are used by banks to price fixed-rate mortgages.

The rate on a two-year swap stood at 5.83 percent on Thursday, down from a peak of 6.52 percent on June 16, according to personal finance data group Moneyfacts.

Moneyfacts said the lower C&G and Nationwide rates had helped cut the average rate on a two-year fixed mortgage to 7.02 percent, down from 7.06 percent on Wednesday.

Last week, the average two-year fixed mortgage rate rose to 7.08 percent, the highest since 1992.

Mortgage costs have risen sharply in the past year as banks stung by the credit crunch seek to conserve capital and protect profits. The abrupt drying-up of cheap mortgage finance has triggered a sharp drop in UK house prices, ending a 10-year property boom.

2: Council tax collection improves for 10th successive year (council)

COUNCIL tax collection rates in North Lanarkshire have improved for the tenth year in a row after the council raised £93 million for the year 2007/08 - an increase of £4 million on the previous year.

The public were praised for their co-operation for the increase in council tax recovered.

Councillor John Pentland, Convener of Policy & Resources (Finance & Customer Services) sub-committee, said: “These figures are very encouraging and highlight the high levels of co-operation of residents in submitting their payments on time and the work of council staff

“To increase council tax collection for the tenth year in a row is a fantastic achievement and the extra revenue will contribute towards providing essential services.

“While no council can expect to have a 100 per cent success rate, these figures highlight how vigorously we pursue outstanding payments. “