Brokers hope Nationwide’s mortgage deal is sign of ‘summer of savings’ for homebuyers
People who are on fixed-rate mortgages have been cautioned they are missing out on the best rates – as Nationwide sparked the return of sub-4% rates today. The UK’s biggest building society has made the move as the Cost of Living crisis continues.
Brokers hope Nationwide’s mortgage deal is sign of ‘summer of savings’ for homebuyers. Nationwide Building Society said from Wednesday it would be reducing rates by up to 0.25 percentage points across its two-, three- and five-year fixed mortgage products.
It will be offering a five-year fixed deal priced at 3.99%. This will be available to new customers buying a home who are looking to borrow up to 60% of the property’s value.
Nicholas Mendes, a mortgage technical manager at the broker John Charcol, said: Nationwide is the first lender to finally break the 4% benchmark following recent weeks of downward repricing. This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of higher rates.
We will likely see the likes of HSBC look to reprice again to ensure they stay ahead of the pack, he said.
Emma Jones, the MD at the broker When The Bank Says No, said: This is a big moment. Lenders seem to be pricing in a BoE base rate cut in August or, if not, not long after. If that happens, then we could see rates continue to decline.
Henry Jordan, Nationwide’s director of home, said the latest rate cuts, including the reintroduction of a sub-4% deal, further reinforce our position as one of the most competitive lenders in the market. The minimum loan size on £1,499 fee products is £300,000.
