Nationwide cuts mortgage charges as lowest fastened offers hit 4.5%
Nationwide Building Society is lowering its mortgage rates, along with several other high street banks and building societies.
From tomorrow, Britain’s second biggest mortgage lender will cut fixed rates by up to 25 basis points.
Alongside Nationwide, Halifax is also cutting rates by 15 basis points on fixed rate products across its home mover and first time buyer ranges.
Earlier today, TSB announced it was cutting some mortgage rates by up to 60 basis points following on from Virgin Money, Santander, Barclays and HSBC, which have all repriced downwards this week.
Tomorrow’s cut will mean Nationwide will be offering the lowest two-year fixed rate at home movers at 4.5 per cent. This requires a deposit of at least 40 per cent.
The deal comes with a £1,499 fee, which is higher than some of the other banks – for example Barclays has a two-year fix at 4.6 per cent, which comes with an £899 fee.
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On a £200,000 mortgage being repaid over 25 years, being on Nationwide’s deal would mean paying £1,111 a month.
Those with a 25 per cent deposit will be able to secure a market leading two-year fix at 4.65 per cent, albeit with a chunky £1,499 fee.
Nationwide will also be offering a market leading five-year fix at 4.68 per cent, beating Skipton’s 4.74 per cent and Barclays 4.76 per cent deals.
‘These changes from Nationwide show that there’s still plenty of competition between lenders on the way down,’ said David Hollingworth, associate director at broker L&C Mortgages.
‘There’s still plenty of uncertainty and Sonia swaps [off which fixed mortgage rates are priced] look to have edged up again given some of the ongoing unpredictability around peace talks and reopening of the straits.
‘Hopefully that will ease and allow the gradual improvement in fixed rates to continue but nothing can be taken for granted against such a fragile backdrop.
‘Borrowers need to expect the unexpected and grab a favourable rate while they can. They should then keep in touch with their adviser up to completion in case they can jump to a lower rate.’
Justin Moy, managing director at Chelmsford-based EHF Mortgages, described the cuts as ‘timely’.
He said: ‘There is still much that can happen that may turn these rate cuts upside down, so those now looking through the shop window for a new mortgage deal may want to consider jumping in, just in case.’
