Mortgage lenders have been cutting their rates for the last week with Virgin, TSB and Santander announcing yesterday they were reducing prices, following in the footsteps of Barclays, HSBC, Halifax and NatWest.
Now Nationwide has joined the price cutting trend and is offering two-year fixed rates from 4.5%, three-year fixes from 4.68% and five-year fixed rates from 4.68%.
Aaron Strutt, product and communications director of Trinity Financial, said it had gone ‘ones step further’ than its competitors by offering these deals.
He added: “Its tracker rates look good as they start from 4.14%. While it is great to see rates come down 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 provide an idea of how this compares to other deals, data from Moneyfacts shows the average two-year fixed rate is 5.82% today.
There are also reductions on first-time buyers mortgages, which come with £500 cashback.
Carlo Pileggi, Nationwide’s head of mortgage products, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home.
“These changes apply across those ranges, with some of our largest cuts being made on higher loan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”
Mortgage price cuts: What should borrowers expect?
With Nationwide adding its name to the ever-growing list of lenders making price cuts, borrowers are continuing to benefit from some much-needed reductions after mortgage rates soared during the conflict in the Iran.
But the question on the lips of anyone about to take out a mortgage is, will this continue? Brokers are advising borrowers to be cautious if they are waiting for more cuts.
Ken James, director at London-based Contractor Mortgage Services, speaking to the Newspage agency, said: “On the surface, the momentum looks encouraging. After far too much swap rate volatility and a pricing whiplash from lenders, any downward movement feels like a welcome shift.
“But let’s not pretend the sector is breathing easy. If we blink at the wrong moment, the News at Ten could still deliver another setback. Markets remain hypersensitive, and confidence is still as fragile as the peace talks.”