Nationwide, NatWest and TSB minimize mortgage charges
- Nationwide to offer lowest five-year fix for 5% deposit purchase from tomorrow
Major lenders have today revealed further mortgage rate cuts across fixed deals.
Nationwide Building Society, NatWest and TSB have all announced they are repricing home loans.
Those likely to benefit the most from the latest wave of cuts are first-time buyers and home movers who are buying with smaller deposits.
The latest announcements follows fresh in the wake of Barclays and TSB who cut mortgage rates earlier this week including on 5 per cent deposit deals.
> Best mortgage rates for first-time buyers: How long should they fix for?
Cheaper deals: Nationwide, NatWest and TSB are cutting rates from tomorrow
Nationwide is reducing rates by up to 0.25 percentage points across two-year, three year and five year fixed products for those buying with deposits of between 25 and 5 per cent of the purchase price.
From tomorrow, Britain’s biggest mutual will be offering the lowest rate on the market for first-time buyers and home movers purchasing with a 5 per cent deposit.
Its five-year fixed deal will charge 5.04 per cent with a £999 fee. On a £200,000 mortgage being repaid over 25 years, that equates to £1,174 a month.
Henry Jordan, director of home at Nationwide Building Society, said: ‘These latest reductions will ensure that we have some of the most competitive rates on the market with a particular focus on supporting first-time buyers in what remains a challenging environment.’
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: ‘First-time buyers can do with all the help they can get, particularly as they tend to pay higher mortgage rates than those with bigger deposits.
‘These reductions are part of the general softening in mortgage pricing and will be welcomed by those trying to get on the ladder.
‘Lenders are competing for new business so where one goes at the moment, others tend to follow, which means further price cuts could well be on the way from other lenders.’
In another welcome change for first-time buyers and those with smaller deposits, NatWest has also announced fixed rate cuts of up to 0.19 percentage points across selected 90 per cent and 95 per cent loan-to-value products.
Ken James, director at Contractor Mortgage Services told the news agency, Newspage: ‘NatWest have just provided a massive boost to those with smaller deposits, sending a signal to other lenders that this is the end of the market that could do with more support.
‘We have seen that lenders have the capacity to offer these rate cuts and brokers are starting to see buyers coming back to the market with a renewed sense of positivity.
‘Let’s hope that this will cascade down the line to other lenders so that we have more competition at these higher loan-to-value brackets.’
TSB is also reducing rates, albeit not in the high loan-to-value brackets with rates changing on deals that require a 15 per cent deposit or more.
From tomorrow, TSB is reducing rates by up to 0.35 percentage points with first-time buyers, home movers and remortgaging customers set to benefit.
TSB says its rates will start from 3.79 per cent from tomorrow – close to the lowest rate on the market currently offered by NatWest at 3.77 per cent.
