Mortgage lenders have cut interest rates in the past week, with Virgin, TSB and Santander yesterday announcing they were cutting prices, following Barclays, HSBC, Halifax and NatWest.
Now Nationwide has joined the trend of price cuts, offering two-year fixed rates from 4.5%, three-year fixed rates from 4.68% and five-year fixed rates from 4.68%.
Aaron Strutt, product and communications director at Trinity Financial, said it had gone ‘one step further’ than its competitors in offering these deals.
He added: “The tracker rates look good as they start at 4.14%. While it’s great to see rates falling again, the only question is how long it will be before the lender has to increase them.”
The two-year deal at 4.50% is now Nationwide’s lowest rate. To give an idea of how this compares to other deals, Moneyfacts data shows that the average two-year fixed rate currently stands at 5.82%.
There are also discounts on mortgages for first-time buyers, offering £500 cashback.
Carlo Pileggi, head of mortgage products at Nationwide, said: “We are pleased to be able to reduce our mortgage rates to support both first-time buyers and those looking for their next home.
“These changes apply to all of these areas, with some of our biggest cuts coming to higher mortgages, which will benefit first-time buyers looking to get on the property ladder.”
Mortgage Price Reductions: What Can Borrowers Expect?
With Nationwide adding its name to the growing list of lenders making price cuts, borrowers continue to benefit from some much-needed reductions after mortgage rates soared during the Iran conflict.
But the question on the lips of anyone about to take out a mortgage is: will it stay this way? Brokers are advising borrowers to be cautious as they wait for further cuts.
Ken James, director of London-based Contractor Mortgage ServicesSpeaking to the Newspage agency, he said: “On the face of it, the momentum looks encouraging. After far too much volatility in swap rates and a surge in lender prices, any downward movement feels like a welcome shift.
“But let’s not pretend that the sector is breathing easy. If we blink at the wrong time, News at Ten could still cause another setback. Markets remain hypersensitive and confidence is still as fragile as the peace talks.”