Nationwide launches mortgage rates below 4%
Nationwide Building Society has announced a significant reduction in its mortgage rates, with the lowest rate now dipping below 4%. The mutual lender has reduced prices by up to 0.25% across its two-, three-, and five-year fixed-rate products, making it the first major lender to offer mortgage rates below 4% since lenders hiked their rates as inflation soared in the UK. In this article I will run through these new changes and also offer my expert opinion for prospective new mortgage borrowers.
New Mortgage Rates Below 4% From Nationwide
The last couple of years has seen a lot of turbulence in the UJ mortgage market. As mortgage brokers based in London, we know this all too well! Rates rose from record lows of 1% and 2% to 6, 7, and in some cases 8%. However, as inflation has cooled and the economy is returning to a more normal state, many lenders have started reducing their rates. Until now, a ‘good’ rate was probably 4.5%…and it still is! However, Nationwide has stirred things up a bit in the market by offering products at under 4%. Starting today, the new rates available to customers include:
New Customers Moving Home:
- Five-year fixed-rate mortgages at 60% loan-to-value (LTV) with a £1,499 fee will now be 3.99%, a reduction of 0.19%.
- Five-year fixed-rate mortgages at 60% LTV with no fee will now be 4.24%, a reduction of 0.23%.
First-Time Buyers:
- Five-year fixed-rate mortgages at 85% LTV with a £999 fee will now be 4.55%, a reduction of 0.24%.
- Two-year fixed-rate mortgages at 85% LTV with a £999 fee will now be 4.95%, a reduction of 0.19%.
Remortgages:
- Five-year fixed-rate mortgages at 75% LTV with a £999 fee will now be 4.43%, a reduction of 0.17%.
Other Changes Announced
Nationwide has also reduced selected two-, three-, and five-year switcher rates up to 95% LTV by up to 0.25%, with rates starting from 4.24%. Meaning that borrowers with 5% deposit can benefit from lower rates on their new mortgages. For existing customers moving home, rates on selected two-, three-, and five-year fixed-rate products up to 95% LTV have been cut by up to 0.23%. Additional borrowing rates have been reduced by up to 0.25% on two-, three-, and five-year fixed products up to 90% LTV. However, Nationwide will increase rates by up to 0.15% on selected two-year tracker products.
Expert Thoughts On Nationwide Reducing Mortgage Rates
Oliver Whitehead, my managing director here at Oportfolio Mortgages, highlighted the significance of Nationwide’s move: “Seeing mortgage rates drop below 4% is a positive sign for the housing market and for borrowers looking for more affordable options. Nationwide’s rate cuts will undoubtedly provide much-needed relief and opportunities for first-time buyers, movers, and those looking to remortgage. We have all sat patiently and dealt with the curve balls sent our way over the last few years. Now is the time for the lenders to start playing ball properly.”
Speak To A Mortgage Advisor Today
Oportfolio are dedicated to helping clients navigate the complexities of mortgage applications and finding the best deals to suit their needs. With a team of experienced professionals, Oportfolio Mortgages offers personalised advice and support for first-time buyers, home movers, and those looking to remortgage. For more information or to discuss your mortgage needs, please feel free to contact us today.
